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SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



DOCUMENTS DtPT. 
FEB 2 11989 

>•■ >mi in « iku a i* v 



JANUARY 17, 1989 






ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

January 17, 1989 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 



A. CALL TO ORDER: 

B. ROLL CALL: 

C. ADOPTION OF MINUTES: 89-0001 

D. ITEMS INITIATED BY COMMISSIONERS: 

Off-Airport Rent-A-Car 
Companies 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

1. Solicit Proposals for Runway 

Modification Feasibility Study 89-0002 3-5 

2. South San Francisco, Mill brae 
and San Bruno Home Insulation 

Funding - FY 89-90 ($682,956.00) 89-0003 5 

3. Authorization to Conduct Pre-Bid 
Conference: Garage Taxi Staging 

Area Mobile Catering Leases 89-0004 5 

4. Authorization to Conduct Pre-Bid 
Conference: International Terminal 

Cigarette Vending Lease 89-0005 5 

5. Authorization to Accept Bids: North 
Terminal HUB Principal Concession 
Lease for Retail Merchandise 

Sales 89-0006 5-7 

6. Hotel-Motel Advertising and 
Cable Car Message Sign Authori- 
zation to Implement Airports 

Operation 7 

7. Rejection of All 3ids and Authori- 
zation to Re-Bid Contract 2024R: 
Carpet Replacement Buildings 646 

and 676 89-0007 7 



CONSENT CALENDAR CF ROUTINE 
ADMINISTRATIVE MATTERS: 

8. Reso'ution Modifying Lease and 

Use Agreement - Northwest Airlines, 
Inc. - Modification No. 3 89-0008 

9. Resolution Authorizing a $1,154,976 
Reimbursement to Northwest 

Airlines Inc. 89-0009 

10. Resolution Acknowledging the 
Assignment of Lease 82-0120 and 
Associated Permits from USAir 

Group, Inc. to USAir, Inc. 89-0010 

11 . Close-Out Contract 1416-C: 
Delta Airl ines Faci 1 i ties, 

Boarding Area 'C 89-0011 

12. Bid Call - Contract 2163: 
Airport Fuel System - Repair 

and Related Work - FY 1989-90 89-0012 

13. Supplementary Construction 
Funding Contract No. 1464: 
Boarding Area 'B' Apron 

Extension 89-0013 

14. Resolution Ratifying Personnel 

Actions 89-0014 



G. PUBLIC HEARING: 

15. Proposed Fiscal Year 1989/90 

Budget 8-9 

H. NEW BUSINESS: 9 

I. CORRESPONDENCE: 9 

J. CLOSED SESSION: 9 

K. ADJOURNMENT: 9 



Minutes, January 17, 1989, Page 2 



Mi nutes 

of the 

Airports Commission Meeting 

January 17, 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Z. L. Goosby, Vice President 

Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 

Absent: Morris Bernstein, President 



ADOPTION OF MINUTES: 

The minutes of the regular meetings of December 6 and 20, 1988 were 
adopted by order of the Commission Vice President. 

No. 89-0001 



D. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Stephens recognized Jason Yuen's letter to the Commission 
regarding the $1.00 Airport fee being charged to passengers of off-Airport 
rent-a-car courtesy vehicles. He said that that particular' company made 
$6.00 for the bus ride and that should be taken into consideration as 
staff comes up with a proposal on a gross receipts charge for off-Airport 
rent-a-car costs. 



E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE; 
The following items were adopted unanimously. 
1. Solicit Proposals for Runway Modification Feasibility Study 

No. 89-0001 This item authorizes the Director of 

Minutes, January 17, 1989, Page 3 



Airports, by Airports Commission 
resolution, to initiate a feasibility 
study to modify the existing runway 
systems to abate aircraft noise en 
surrounding communities. 

Mr. Lou Turpen, Airport Director, advised the Commission that the San 
Mateo County Regional Planning Committee/Airport Land Use Commission 
voted to endorse a study for reconfiguring the Airport's runway 
system that could virtually eliminate noise on surrounding 
communi ties . 

Mr. Turpen proposed that the study be undertaken in three phases, 
with the first phase to determine whether or not a runway 
reconfiguration would abate noise. If so, the second phase would 
determine what needs to be done, how it should be done, how long it 
would take and how much it would cost. Finally, the third phase 
would determine if the benefits would outweigh the costs, at which 
point an Enri vonmental Impact Report would be undertaken. 

Mr. Turpen said that this approval would cover all three phases and 
that he would brief the Commission upon completion of each phase. 

Mr. Timothy Treacy of the San Francisco Airport Noise Committee told 
the Commission that his Committee opposes this study on the grounds 
that he felt that the purpose is to shift noise from San Mateo County 
to San Francisco. He said that the Airports Commission has never 
acknowledged that there is a noise problem in San Francisco. He felt 
that this kind of study should be part of the master plan. Mr. 
Treacy said that he also feared that this study was a move towards 
increasing capacity. 

Commissioner Goosby told Mr. Treacy that the Commission has paid a 
lot of attention to this issue and is aware of the concerns of the 
community. He said that he has been to several community meetings 
himself. He asked Mr. Turpen if the Airport had a representative on 
the Noise Committee. 

Mr. Turpen responded that Ron Wilson was the Airport's representative. 

Commissioner Goosby felt that if the Noise Committee doesn't realize 
that the Commission is aware of the noise problem then there must be 
a communication problem between the Airport and the community. 

Mr. Treacy commented that the Mayor had made a campaign promise to 
deal with the problem of overflights and he hasn't done a thing. He 
again stated that he opposed the study on the grounds that he felt 
that the Roundtable's intent is to shift noise to San Francisco. 

Commissioner Murphy asked Mr. Treacy if he was suggesting that this 
study not be undertaken. 

Mr. Treacy responded that it should not because it will increase 
noise in San Francisco. 

Commissioner Duvall assured Mr. Treacy that this would be the 
Commission's study and no matter what the motives of others might be, 
it is not the Ccmmission's intention to increase noise in San 
Francisco. It would make no sense to increase noise somewhere else. 
She told Mr. Treacy that this study would afford the opportunity to 
determine whether or not reconfiguring runways could reduce noise. 
She assured him, once again, that if this study were to indicate that 
noise could not be reduced overall, the Airport will not undertake 
the project. 



Minutes, January 17. 1989, Page 4 



Mr. Treacv thanked Commissioner Duvall for her assurances 



South San Francisco, Mill brae and San Bruno Home Insulation Funding 
FY 89-90 ($682,956.00) 

No. 89-0002 Resolution authorizing the expenditure 

of funds ty the Director for home 
insulation of approximately 273 
residences in South San Francisco, 
Millbrae and San Bruno. Expenditure 
of approximately $682,956.00 is 
limited to the following: 

a. 207. of the building insulation 
costs for each unit. 

b. Subject to the granting of a Noise 
Easement to the City & County of 
San Francisco for each unit 
insulated. 



Authorization to Conduct Pre-Bid Conference: 
Garage Taxi Staging Area Mobile Catering Leases 

No. 89-0003 

Commissioner Goosby asked if this item included only the mobile 
catering companies located in the garage. He said that he wanted 
to make sure this had nothing to do with the other mobile catering 
trucks. 

Mr. Turpen assured Commissioner Goosby that it did not. 



4. Authorization to Conduct Pre-Bid Conference: 
International Terminal Cigarette Vending Lease 

No. 89-0005 



5. Authorization to Accept Bids: 

North Terminal Hub Principal Concession Lease for Retail 
Merchandise Sales 

No. 89-0006 

Ms. Angela Gittens, Deputy Director, Business and Finance, told the 
Commission that the California Shop has been included and the 
requirement has been increased so that it now starts at 257. MBE and 
107. WBE, in recognition of this increased space for the concession. 

Mr. Suzuki, in-house counsel for Duty Free Shoppers, requested that 
this contract not be bid until a decision has been made as to what 
will replace Expressions. 

Mr. Turpen said that that is the ABC Cigar News and Gift location 
and stiff will be proposing that that space be bid as a bookstore. 
He said that it would not be a problem to hold up the North 
Terminal Hub until the Commission votes on the bookstore. 

Minutes, January 17, 1989, Page 5 



Commissioner Goosby asked Ms. Gittens to explain the SBE issue amd 
how the Airport's definition differs from the Human Rights 
Commission's definition, and the problems that have been created. 

Ms. Gittens explained that the Airport's criterion for SBE is 
$600,000 in gross revenues for a sole proprietor and $2-mi 1 1 i on for 
a company or group of individuals. The Human Rights Commission's 
definition is $2-mi 1 1 i on , whether for an individual or a company. 

Ms. Gittens said that the North Terminal Hub was originally bid 
before the MBE/WBE ordinance so HRC simply used the Airport's 
definition. Although HRC now claims that they will not certify 
based on our definition, Ms. Gittens said that that has not been a 
major problem. In any case, we have eliminated the SBE requirement 
for subleases for the North Terminal Hub principal concession, so a 
sublessee does not have to be a small business. 

Commissioner Duval 1 asked why the expression "good faith" was used 
in item 10 on page 5. 

Ms. Gittens responded that that language was a major bone of 
contention in the previous contract and led to our having to throw 
out three bids. In order to avoid trouble, we have deferred to 
HRC's definition. 

Commissioner Goosby commented that that language was used because 
when the ordinance was drafted there was concern that a subleasing 
requirement would constitute a quota. 

Ms. Gittens remarked that based on HRC's interpretation of the 
ordinance, if an MBE wins the bid they must still sublet to an MBE. 

Commissioner Duval 1 asked what the MBE/WBE percentage is at the 
Airport. 

Ms. Gittens responded that the percentage is 22% since the program 
began, however, if all concessions are included, we are only 
talking about 4%. She explained that the reason for this is that 
some concessions, such as the rent-a-cars, garage and food and 
beverage, were awarded prior to the programs inception and 
therefore have no participation. 

Commissioner Stephens asked about Duty Free. 

Ms. Gittens responded that they were not participants. 

Commissioner Stephens asked when the duty free lease would be 
re-bid. 

Ms. Gittens responded that the specifications are going out next 
week. She said that there is no proposal for subletting duty free 
because when staff looked into it there did not seem to be any 
meaningful way of doing it that would be consistent with the 
Commission's views. She explained that in some of the programs 
staff has examined, although the subtenant gets its share of the 
revenue they don't have any management control due to the nature of 
the business. 

Commissioner Stephens asked if the highest bid must be accepted, 
even if it is only 10?! more. 

Ms. Gittens responded that it must be accepted. 

Commissioner Stephens said that he is aware of a minority joint 



Minutes, January 17, 1989, Page 6 



venture company that might bid and asked if they would receive a 
preference. 

Ms. Gittens responded that they would receive a 5% preference. 

Commissioner Stephens asked which airports have these subtenant 
arrangements for duty free concessions. 

Ms. Gittens responded that Dallas/Fort Worth has this arrangement, 
and possibly Miami as well. 

Mr. Turpen said that staff will conduct a survey and report back to 
the Commission. 



Item No. 6 was put over. 

6. Hotel-Motel Advertising and Cable Car Message Sign Authorization to 
Implement Airports Operation 

Mr. Turpen directed Ms. Gittens to meet with Ackerley Airport 
Advertising to explore their concerns prior to the next Commission 
meeting. 



Item No. 7 was adopted unanimously. 

7. Rejection of All Bids and Authorization to Re-Bid Contract 2024R: 
Carpet Replacement Buildings 646 and 676 

No. 89-0007 Resolution rejecting all bids received 

on December 21, 1988 and authorizing 
the Director to re-bid. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

8. Resolution Modifying Lease & Use Agreement - Northwest Airlines, 
Inc. - Modification No. 3 

No. 89-0008 

Commissioner Goosby asked if Northwest received a rental credit 
when they built this space. 

Ms. Gittens responded that these costs were incurred when Republic 
was going into its Phase III space and therefore it was at their 
sole cost. 

Mr. Turpen told the Commission that he would not have made the 
recommendation to buy them out had there been rental credits. He 
added that this way we gain control of the space. 



Minutes, January 17, 1989, Page 7 



Resolution Authorizing a $1,154,976 Reimbursement to Northwest 
Ai r 1 i nes , Inc . 



No. 89-0009 



Resolution authorizing a 51,154,976 
reimbursement to Northwest Airlines, 
Inc. for the unamortized value of 
their improvements in their vacated 
leased premises. 



Resolution Acknowledging the Assignment of Lease 82-0120 and 
Associated Permits from USAir Group, Inc. to USAir, Inc. 

No. 89-0010 



11 . Close Out Contract 1416-C: 

Delta Airlines Facilities, Boarding Area 'C 



No. 89-001 



All work under contract has been 
completed. Adjustment of $55,268.33 
for extra work performed is required 
to fix final contract price at 
$4,916,194.37. Delta Airlines will 
reimburse Airport $35,028.53 for this 
extra work. 



12. Bid Call - Contract 2163: 

Airport Fuel System - Repair and Related Work 
Year 1989-1990 



No. 89-0012 



Resolution approving the scope, budget 
and schedule for Contract No. 2163 and 
authorizing the Director of Airports 
to call for bids when ready. 



13. Supplementary Construction Funding 

Contract No. 1464: Boarding Area 'B' Apron Extension 



No. 89-0013 



Resolution to approve supplementary 
construction funds. 



1 4. Resolution Ratifying Personnel Actions 
No. 89-0014 



Resolution, in accordance with the 
requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



PUBLIC HEARING: 

The public hearing was convened at 9:45 AM and closed at 9:46 AM, there 
being no requests from the public to speak. 

Minutes, January 17, 1989, Page 8 



5. Propored Fiscal Year 1989-90 Budge 4 : 

Mr. Turpen told the Commission that staff will meet with the 
Airline Affairs Committee tomorrow to discuss the budget. The 
Commission will receive a summary of the comments made at that 
meeting prior to the February 7 Commission meeting. 



H. NEW BUSINESS: 

There was no discussion. 



I. CORRESPONDENCE: 

There was no discussion 



J. CLOSED SESSION: 

There was no closed session. 

* * * 



K. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:47 AM. 



f 4- 



n Caramatti 



Jeter 

Commission Secretary 



Minutes, January 17, 1989, Page 9 



1 Z 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DErT. 

MAR I *' I 5 * 89 



MINUTES 



FEBRUARY 7, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of tie Mi nutes 

Airports Commission 

February 7, 1989 



CALENDAR AGENDA 
SECTION ITEM 



TITLE 



RESOLUTION 
NUMBER 



PAGE 



A. 
B. 
C. 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 
January 7, 1989 



89-0015 



SPECIAL ITEM: 

Dedication of 

Howa-'j A. Friedman Court 

ITEMS INITIATED BY COMMISSIONERS: 



89-0016 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Airports Commission Budget 
FY 1989/90 



89-0017 



Effective Date Change for Ground 
Transportation Fee Increase 89-0018 

Approval of Professional Services 
Agreement with Gordon H. Chong 
and Associates, Inc., to Provide 
Architectural and Engineering 
Servies for Contract No. 2106, 
Additions to Boarding Area 'B' 89-0019 

Bid Call - Contract No. 2173: 
Federal Inspection Services New 
Processing Stations 89-0020 

Long Distance Carrie'' for Pacific 

Be' ] "ub 1 i: Payphones 89-0021 

Autio r: ration to Conduct a Pre-Bid 

Conference f or note" Mote 1 and 

Cab ] e Car ^vert ; ; i rq Agreement 89-0022 

8 ; d Call - Contract No. '947: 
Nortfr Dete"ti^r Pond, 20-Inch 
Hate- Main Installation 89-0023 



4 

4-5 
5-6 



CONSEN" calendar of routine 

ADMINISTRATIVE MATTERS: 

9. Modification No. 2 to Eastern 

Airlines Lease and Use Agreement 
No. 82-0116 

10. Modification No. 3 to American 
Airlines Lease and Use Agreement 

No. 82-0111 89-0024 

11. Award of Contract No. 2086: 



Lomi ta/Mi 1 1 brae and Central Pump 

Stations Repairs 89-0025 7 

12. Approval of Claims Settlement 89-0026 8 

13. Professional Services Agreement 
with Athena Tsougarakis - 

$5,000.00 89-0027 8 

14. Travel/Training 89-0028 8 

H. NEW BUSINESS: 

Supreme Court Decision 8 

Variances 8 

Maste- Plan 8-9 

I. CORRESPONDENCE: 9 

J. CLOSED SESSION: 9 

K. ADJOURNMENT: 9 



Minutes, February 7, 1989, Page 2 



Mi nutes 

cf the 

Airports Commission Meeting 

February 7, 1989 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of January 17, 1989 were adopted by 
order of the Commission President. 

No. 89-0015 



SPECIAL ITEM: 

1 . Dedication of Howard A. Friedman Court 

No. 89-0016 

Mr. Lou Turpen, Airport Director, said that in light of the many 
contributions made over the years by Howard Friedman to the Airport, 
staff is recommending that the courtyard in the South Terminal, lower 
level triangle be named his honor. Mr. Turpen said that there will 
be a small dedication ceremony. 

Commissioner Goosby said that he was pleased. He also commented that 
nothing, as yet, has been done for former Mayor Feinstein. 



E. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners. 

Minutes, February 7, 1989, Page 3 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 
The following items were adopted unanimously. 
2. Airports Commission Budget FY 1989/90 



89-0017 



Resolution approving the proposed FY 
1989/90 budget. 



Mr. Turpen explained that the only modification is the deletion of 

$90,000 for the RIDES program. Based on an assessment of the 

advantages of this program staff did not feel that the expenditure 
was warranted. 



Effective Date Change for Ground Transportation Fee Increase 

No. 89-0018 Approve attached resolutiondelaying 

the effective date of the first rate 
increase for the ground transportation 
carriers from May, 1989 to June 1, 
1989. 

Mr. Turpen said that consistent with the Commission's desire to 
ensure a full trial period, the implementation date for the 70?! fee 
has been changed. He said that the times have been adjusted based on 
problems with the installation of the system and basic delays in 
terms of the software. The SI. 00 rate will still become effective at 
the end of the year. 



Approval of Professional Services Agreement with Gordon H. Chong and 
Associates, Inc., to Provide Architectural and Engineering Servies 
for Contract No. 2106, Additions to Boarding Area 'B' 



No. 89-0019 



Resolution approving agreement to 
provide services for the design and 
preparation of construction documents 
to enlarge gate rooms, and add 
concessions, VIP Room and public 
restrooms in Boarding Area 'B' for 
Continental and Eastern Airlines. 
Construction Budget: $6,200,000. 
Professional Services Budget: 
$350,000.00 



Bid Call - Contract No. 2173: 

Federal Inspection Services New Processing Stations 

No. 89-0020 Resolution approving the scope, budget 

and schedule for Contract No. 2173 and 
authorizing the Director of Airports 
to call for bids when ready. 

Mr. Turpen said that this will help enhance our customs arrivals 
capability this summer. Because it has to be in place by June 1, 
this item is unusual in that it authorizes the Director to bid the 
contract, accept the bid and complete the work. The June 1 date 
cannot be met if staff goes through the normal City cycle. 

Minutes, February 7, 1989, Page 4 



Commissioner Goosby asked if the numbe<- was being increased, or, if 
this was simply a remodeling effort. 

Mr. Turpen responded that the number of primary stations was being 
increased along with the number of customs and immigration agents. 
He added that this is part of a several step process currently being 
worked on to improve customs/immigration processing at the Airport 
during the peak summer months. 

Commissioner Duval 1 asked how many processing stations were currently 
in place. 

Mr. Turpen responded that there were currently 20 stations. 



Long Distance Carrier for Pacific Bell Public Payphones 

No. 89-0021 Resolution authorizing Director to 

issue one year agreement with AT&T for 
long distance service for Airport's 
Pacific Bell Public Payphones. 

Mr. Turpen said that this extension would allow staff the time to bid 
the Airport's long distance carrier service at the Airport. 

Commissioner Stephens asked if this was for pay telephones or Airport 
Administration telephones. 

Mr. Turpen responded that this was for pay telephones. 

Commissioner Stephens asked if the Airport received a fee. 

Mr. Turpen responded that we do. Extending the current contract will 
give staff the necessary time in which to send out an RFP and to 
determine the types of available revenue. 

Commissioner Bernstein did not approve of the length of the 
extension. 

Mr. Turpen explained that the Airport will receive an additional 127., 
or about $400,000 in additional revenue. If nothing is done, it will 
continue at the old rate. He said that it's not possible for staff 
to bid this contract under the current system within the next several 
months. Staff felt that the additional revenue was worth the year 
extension. 

Commissioner Duvall asked if these revenues were included in our 
budget. 

Ms. Gittens responded that they were not. 

Commissioner Bernstein again said that he was not comfortable with 
the one-year extension. He felt that this must be a very lucrative 
business and will be quite a contract. 

Mr. Turpen said that that is exactly why it will take so long to bid. 
He said that this is a highly competitive environment and he believed 
that once it was opened up there will be heavy participation at all 
levels of the process. He felt that that degree of participation 
justifies the one-year extension. 

Commissioner Stephens asked if this was a large contract for the 
Airport . 



Minutes, February 7, 1989, Page 5 



Ms. GUtens responded that if we can get $400,000 from AT&T without a 
bid, we should be able to get that from anyone. 

Ms. Gittens explained that this is for the commission on long 
distance calls from AT&T on PT&T phones, unless the customer selects 
a different long distance carrier. In other words, if a customer 
simply places a long distance call without selecting a specific 
carrier, the call will be placed with AT&T, the default carrier. 

Commissioner Bernstein asked when the year will expire. 

Ms. Gittens responded that it will expire approximately one year from 
now. Staff will begin working on it and in about three or four 
months, as staff starts to receive information from this system, as 
well as inquiries from others, the specifications can be developed. 
She said that staff's current problem is that although there are a 
lot of companies purporting to provide this service specifications 
must be developed to meet our service requirements. 

Mr. Turpen said that the Airport has 30-million passengers and about 
100-mi 1 1 ion users a year who should be able to access a system. 
Criteria must be developed to ensure that the successful bidder can 
meet the demands in terms of the volume of calls and level of service. 

Commissioner Bernstein asked how much the Airport receives for local 
calls. 

Ms. Gittens responded that the Airport receives about $430,000 for 
local calls. 

Commissioner Bernstein said that this contract generates at least 
$800,000 annually in revenue to the Airport. 

Mr. Turpen said that the new bid will generate more. 

Commissioner Stephens asked if the Airport receives revenue in the 
event the caller selects an alternative long distance carrier. 

Ms. Gittens responded that the Airport currently receives 3?! a minute 
on a PT&T long distance call. What we will receive on another long 
distance phone will be a subject in the bidding process. 

Commissioner Stephens asked if the Airport would receive any revenue 
from an alternative long distance carrier. 

Ms. Gittens responded that we would receive 3{ per minute from 
Pacific Telephone but nothing from the alternative long distance 
carrier. 

Commissioner Stephens said that if the long distance call goes to the 
default carrier then the Airport receives a lot more than 3# per 
mi nute . 

Ms. Gittens responded that that was correct. 

Commissioner Stephens said that the Airport must be sure that the 
successful bidder is one of the major companies. A high bid from a 
small company would most likely result in a lower dollar volume as 
more customers would be selecting their own carrier rather than the 
default carrier. 

Mr. Turpen said that that would seem to make sense. 



Minutes, February 7, 1989, Page 6 



7. 



Authorization to Conduct a Pre-Bio Co rf ere n ce for Hotel /Motel and 
Cab'e Car Ajve-tis ; "g A^ee^e^: 



No. 89-0022 

Mr. Turpen said that this item was put over at the last meeting in 
order to provide the opportunity to work out some details. 

Commissioner Duval 1 said that it was her understanding that this was 
primarily a public service, although it was originally conceived as a 
revenue generating source. 

Mr. Turpen responded that revenue generation is still the intent, but 
it has moved towards public service. 



Bid Call - Contract No. 1947 



North Detention Pond. 20-Inch Water Main Installation 



No. 89-0023 



Resolution approving the scope, budget 
and schedule for Contract No. 1947 and 
authorizing the Director of Airports 
to call for bids when ready. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

Item No. 9 was put ove:' to the next meeting without discussion. The 
remainder of the Conse r t Calendar was adopted unanimously. 

9. Modification No. 2 to Eastern Airlines Lease and Use Agreement No. 
82-0116 

Modifies Eastern Lease and Use 
Agreement by relinquishing the demised 
property back to the City. 

Mr. Turpen asked that this item be put over as there is some question 
as to relinquishment and proper documentation. 



10. Modification No. 3 to American Airlines Lease and Use Agreement No, 
82-0U1 



No. 89-0024 



Modifies American Lease and Use 
Agreement by relinquishing 300 square 
feet of Category I space back to the 
City. 



1 1 . Award of Contract No. 2086: 

Lomi ta/Mi 1 1 prae and Ce r tra ] Pump Stations Repairs 



No. 89-0025 



Resolution awarding Contract No. 2086 
to Power Engineering Contractors, in 
the amount of $141 ,700. 



Minutes, February 7, 1989, Page 7 



12 . Approval of Claims Settlement 
No. 89-0026 



Resolution approving the settlement of 
claims not exceeding $5,000.00 for the 
period July to December, 1988. Total 
claims: $11,286.10. 



1 3. Professional Services Agreement with Athena Tsouqarakis - $5,000.00 



No. 89-0027 



Resolution authorizing an agreement 
with Athena Tsougarakis to (1) serve 
as the Airport's representative on the 
Joint Airport/Arts Committee and (2) 
provide consultation on the Airport's 
ground transportation program. 



4. Travel /Trai ni nq 
No. 89-0028 



Resolution authorizing travel /trai ni ng 
for Airport representatives to attend 
conferences and seminars. 



NEW BUSINESS: 

Commissioner Goosby asked for an evaluation of the City Attorney's 
opinion of the recent Supreme Court decision at the next meeting. 



Mr. Turpen said that the Commission should have received his memorandum 
on the variances which were denied. He said that he called the Chairman 
of the Board and President of Braniff and sent a registered letter as 
well. Mr. Turpen said that he explained to the Chairman of the Board's 
administrative assistant that Braniff would not be operating at San 
Francisco Airport on April 2. He has not bothered to call back. Mr. 
Turpen said he will continue to keep the Commission advised of any 
progress. He said that staff has met with Canadian and spoke with 
Northwest. He told the Commission that everyone is well aware of the 
requirements . 



Commissioner Goosby said that the Master Plan does not clearly identify 
the plan anticipated for the cargo area. He asked if further 
development was being considered. 

Mr. Turpen responded that staff intentionally structured the Master Plan 
in this way in order to bring the communities along during its 
development. Staff will have specific projects sometime in March or 
early April and it will be at that point that the Commission will begin 
to see the type of detail normally expected of a Master Plan. The next 
working paper will offer more information as to the physical changes 
that will be made at the Airport based on the demands that have been 
forecasted. He said that more detail will be seen in the ca go area. 



Minutes, February 7, 1989, Page 8 



Commissioner Bernstein asked Mr. Turpen if the study on the Garter 
snakes has been completed. 

Mr. Turpen responded that it has not yet been completed and we are still 
in the mitigation phase. More studies are being done and at the 
conclusion some type of mitigation plan will be developed and will 
clearly identify those portions of the West of Bayshore property which 
wi 1 1 be useable. 



CORRESPONDENCE: 

There was no discussion by the Commission, 



CLOSED SESSION: 

There was no closed session. 

* * * 



ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:27 AM. 




Kk4JL*. 



>an Caramatti 

}mmi ssion Secretary 



Minutes, February 7, 1989, Page 9 



p 

2 



SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



FEBRUARY 21, 1989 



DOCUMENTS DEPT. 

APR I 2 1989 

SAN FRANCi^O 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 

Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

February 21 , 1989 



CALENDAR 
SECTION 



AGENDA 
ITEM 



TITLE 



RESOLUTION 
NUMBER 



PAGE 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 
February 7, 1989 



89-0029 



ITEMS INITIATED BY COMMISSIONERS: 
Noise/Noise Committee 
Braniff Variance 



3-4 
4 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Request for Proposals: Self- 
Service Luggage Carts 

Reallocation of $7,969,998 of 
Series D Bond Funds 

Exercise Option of Airport 
Parking Management Operating 
Agreement 

On-Airport Rental Cars: Lease 
Extension 



89-0030 



89-003' 



89-0032 



89-0033 
89-0034 
89-0035 
89-0036 
89-0037 



Authorization to Conduct a Pre-Bid 
Conference for Operation of Public 
Lockers and Over-the-Counter Baggage 
Storage Services 89-0038 



Authorization to Permit Video 
Games in the International 
Termi nal 



4-8 
8-9 

9-10 



10 



89-0039 



10-1 



11-12 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

Resolution Ratifying Personnel 
Actions 



89-0040 



12 



8. Award of Contract No. 2024: 

(R2), Carpet Replacement Buildings 

646 and 676 89-0041 12 

9. Bid Call - Contract No. 2067: 
Timber Pile Repair, Runway Approach 

Light Trestles 89-0042 12 

10. Modification No. 2 to Continental 
Airlines Lease and Use Agreement 

No. 82-0316 89-0043 12 

1 1 . Declaration of Emergency: 
International Terminal 8" Diameter 

Sewer Line Repair 89-0044 12 

G. NEW BUSINESS: 13 

H. CORRESPONDENCE: 13 



ADJOURNMENT TO GO INTO 

CLOSED SESSION: 13 



Minutes, February 21, 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

February 21 , 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Patrick A. Murphy 

Sharon B. Duval 1 arrived at 9:05 AM 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of February 21, 1989 were adopted by 
order of the Commission President. 

No. 89-0029 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Goosby said that the letter the Commission received from the 
Airport Noise Committee raised a number of questions. He asked if any of 
those questions were spelled out in the RFP approved by the Commission. 

Mr. Turpen responded that while every specific question will not be 
outlined in the proposal, they will be addressed. Staff will hold public 
meetings at the beginning of the process in order to establish those 
questions and concerns up front. 

Commissioner Goosby asked if the Airport Noise Committee is being kept 
apprised of each step in the process. 

Mr. Turpen responded that Ron Wilson, as the Airport's designated 
appointee to the Committee, is keeping them up to date. 

Commissioner Goosby wanted the fact established that the Commission and 
the Airport are not adversaries in this issue and are working towards the 
same goal . 



Minutes, February 21, 1989, Page 3 



Mr. Ron Wilson, Director of Airport Community Affairs, told Commissioner 
Goosby that that point has been made on a number of occasions, but not 
without difficulty. 

Mr. Turpen explained that this is a difficult situation as the members of 

the Noise Committee are new to this arena and must be educated on the 

subject. He said that skepticism is not uncommon in this type of 
situation. 

Commissioner Goosby said that when he was on the School Board Mayor Alioto 
was an expert at explaining issues to the press, what he intended to do, 
the rationale behind it and the time frame, long before any point of 
controversy was reached. He suggested that it might be a good idea if the 
Airport met with the press once or twice a year in order to explain where 
the Airport is in terms of the noise issue and what steps are currently 
being taken to alleviate the problem. 



Commissioner Stephens said it was his understanding from correspondence he 
has received that Braniff is being allowed to continue to operate at the 
Airport. 

Mr. Turpen responded that that was not correct. He explained that the 
Commission gave each of the non-compliant airlines until April 1 to come 
into compliance. He said that non-compliance might mean that a particular 
airline would no longer operate at SFO. The Commission further gave Mr. 
Turpen the authority to extend the date from April 1 to July 1 in specific 
instances where compliance might occur on a date within the extension. He 
said that Braniff has provided the Airport with new information that they 
will not be able to achieve compliance by the July 1 deadline but can be 
in compliance by September 30. Braniff will forward an official request 
to the Commission through his office. It will most likely be brought 
before the Commission at the March 21 Commission meeting. At that time 
the Commission will be obligated to either grant or deny Braniff's request, 

Commissioner Stephens said that he remembered the letter as indicating 

that Braniff had ordered three (3) stage III aircraft to be delivered in 

June and dedicated to San Francisco. He understood that they would be in 
compliance by the end of June. 

Mr. Turpen said that he spoke with Braniff officials as recently as the 
end of last week and he did not anticipate that they will be in compliance 
unti 1 the third quarter. 



E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: * 

Items 1 through 6 were adopted unanimously. 

Commissioner Duvall arrived at the call of this item. 

1 . Request for Proposals: Self-Service Luggage Carts 

No. 89-0030 Resolution authorizing Director to 

solicit proposals for a self-service 
luggage cart system. 

Mr. Turpen said that the cart proposal has been extremely 
controversial. Staff has tried to structure an outline which 

Minutes, February 21, 1989, Page 4 



reflects the Commission's and Administration's current intent, that 
intent being to provide free carts to arriving international 
passengers and at the same time minimize the cost of such an effort. 
The bid has been constructed so that the Airport would rent cart 
dispensers and offer free carts in the international arrivals area, 
while a fee would be charged for carts in the domestic areas. Staff 
is looking for a bid amount, either plus or minus, which would 
reflect that theme. 

Mr. Turpen said that if there is a change in the basic scheme the 
Commission wishes to pursue then staff's proposal must be amended. 
Staff has been unsuccessful with potential bidders for cart 
concessions in the past. He recommended moving ahead with a pre-bid 
conference for a request for proposals. Although this is 18-months 
prior to the contracts termination date, it will give staff the 
opportunity to determine what interest can be generated. That will 
help to determine whether or not a free cart system in customs 
arrivals should be continued. 

Commissioner Goosby said that the Airport is paying approximately 
$1 —mi 1 1 ion a year to subsidize free carts in customs. 

Mr. Turpen said that as there are currently no restrictions on a 
customs cart, a passenger can return that cart to any dispenser in 
the garage and receive 25#. 

Commissioner Goosby said that the 25£ rebate is not reflected by the 
figures. He said that when the Commission first considered free 
carts in customs, the yearly estimated cost was $500,000. He asked 
if the Airport could legally request RFP's when the Charter and the 
Administrative Code require a bidding process for contracts 
anticipated to be over a certain dollar amount. He thought that the 
exceptions to this rule are professional service contracts for 
attorneys, engineers, architects, etc. 

Mr. Don Garibaldi, Airports General Counsel, explained that the 
applicable Charter section specifically relates to Airport 
concessions. It says that where the concessionaire is going to be 
given exclusive space on the Airport, then it must be competitively 
bid and awarded to the highest responsible bidder. The way this bid 
is structured there will be no exclusive space given to the luggage 
cart operator. It was written that way intentionally so that RFP's 
could be requested rather than going out for bids. 

Mr. Garibaldi said that although it will be an exclusive operation 
the operator will not have exclusive space. The cart dispensing 
machinery will be in the possession of the Airport, not the luggage 
cart operator. Part of the arrangement is that the operator will 
lease it to the Airport and we will occupy the space, not the luggage 
cart operator. 

Commissioner Goosby said that if the Airport retains control of the 
ticket dispensing machines in the garage, then the garage contract 
does not have to be bid either. 

Mr. Garibaldi said that the Airport does own the machinery in the 
garage and the garage contract is a management contract. 

Commissioner Goosby argued that Mr. Leonoudakis had to bid on it. 

Mr. Garibaldi that that is correct. 

Mr. Turpen said that staff has done its best to generate interest in 
this contract but unfortunately only one company has demonstrated any 
interest in providing this service. 

Minutes, February 21, 1989, Page 5 



Commissioner Bernstein commented that the Airport pays a high premium 
for unrestricted cart use. He said that theoretically Smarte Carte 
nets 67-l/2tf per cart. They receive $1.00 and 25tf is refunded with 
10% going to the Airport, for a net of 67-l/2tf. The Airport pays 
$1.00 net. 

Commissioner Murphy asked how the $l-million is calculated. 

Mr. Turpen responded that it is calculated per cart use. The Airport 
reimburses Smarte Carte $1.00 per cart, the amount it would receive 
from the passenger. He explained that this began back in 1983 during 
the original contract. As the contract was clearly in place and the 
Airport was not in a position to change it, the Airport went to a 
test in 1983 or 1984 for a period of 30 or 90 days and offered free 
carts. Staff discovered that useage was up dramatically over the pay 
cart system as passengers began taking two and three carts per family 
instead of a single cart. In 1985, when the option for this contract 
came up, the Commission granted it with the proviso that the 
Commission could require free carts in the customs arrivals area and 
would pay the passenger fee to the company. That clause was put into 
effect in either 1986 or 1987. 

Mr. Turpen told the Commission that every airport offering free carts 
that staff contacted reported a $1 -mi 1 1 ion price tag. We knew it 
would cost $1 -mi 1 1 i on per year. 

Mr. Turpen said that this proposal is trying to establish whether or 
not this system can be continued and, if it can, to minimize the 
cost. He felt that if there is a way this mechanism will ferret it 
out. If there isn't, the Commission will have to take another look 
at whether it wants to pay for that level of service, or, change the 
service we're offering. 

Commissioner Murphy asked if our cost was comparable to Heathrow's. 

Mr. Turpen said that Heathrow was paying about $1 . 7— mi 1 1 i on a year 
and New York was about $1 . 2— mi 1 1 ion a year. 

Commissioner Bernstein said that the Airport is generating an 
enormous loss just to accommodate one group of passengers. 

Mr. Turpen said that there is a lot of history to this issue. From a 
customer service standpoint the concept of providing a free luggage 
cart in the customs arrivals area is good. SF0 is now the only major 
Airport in the United States providing this service for free. SF0 
was the first major airport to go to pay carts. Then everyone else 
went to pay carts and we reversed the trend and went to free carts. 
The question is, how much are you willing to pay for this welcome? 

Commissioner Duvall asked if we've considered operating the service 
ourselves. 

Mr. Turpen said that that has been considered and there are several 
issues involved that make it an unattractive alternative. In 
addition to the option of running the operation ourselves, staff has 
looked at buying carts and putting someone else in business, as well 
as every scheme imagineable. The one scheme that was clearly 
rejected, and the one he himself is against, is providing free carts 
in customs but confining them to the customs area. 

Commissioner Murphy agreed that that did not make sense. He asked if 
staff has looked at providing a different style cart in customs, free 
of the contract, which the Airport would own. This cart would be 
distinctive and would not be mixed with Smarte Carte's carts. He 
said that bonded employees could be hired to return them to customs. 

Minutes, February 21, 1989, Page 6 



Mr. Turpen said that staff has looked at that and the concern was 
retrieving and separating the two types of carts over 5-million 
square feet of Airport space. There were several issues that made 
blending the two systems impractical. The other problem is that 
because the carts are free, useage has risen dramatically. We are 
talking about 1 -mi 1 1 ion carts a year that are being retrieved and 
between 500-600 must be kept in customs at one time. 

Commissioner Murphy said that he understood the problems involved but 
he felt that almost anything would be better than paying $1.00 per 
cart to Smarte Carte. 

Mr. Turpen said that the Commission must keep in mind the 
circumstances that existed at the time that decision was made. He 
felt that that provision was made without the intent to utilize it. 

Commissioner Bernstein said that the theory was that travelers who 
had just spent a large amount of money on airfare didn't have an 
American dollar and therefore couldn't buy a cart. 

Commissioner Murhpy said that he felt that the more compelling 
argument was that free carts were available in other major airports 
in the world. He cited Heathrow as the classic example. 

Mr. Turpen said that international airports typically provide free 
carts. The major domestic airports, Chicago, Houston, L.A., have 
been moving towards a pay cart system. L.A.'s Airport Commission has 
gone through the same pay vs free cart discussions as we have and 
they have returned to a pay cart system. 

Commissioner Bernstein felt that the numbers require a complete 
study. He thought it was disgraceful to lose $ 1 -mi 1 1 i on on a service 
like this. He said that free services usually breed hatred and 
disl ike, not good wi 11 . 

Commissioner Goosby said that Smarte Carte agreed to provide an 
employee in Customs to change money or offer a free cart to those 
passengers unable to buy one. He said that it was subsequently 
found that Smarte Carte was not very diligent in providing such 
employees. 

Ms. Angela Gittens, Deputy Director, Business and Finance, said that 
Smarte Carte did provide that service however the Airport changed the 
decision that had been made. She said that that trial period only 
lasted one month to six weeks before the move to free carts was made. 

Commissioner Goosby said that staff should be looking at the option 
of providing such an employee in customs to offer a free cart to 
passengers who do not have $1.00. 

Mr. Turpen said that his views on free carts have been well- 
documented. The concept of free carts as a service is unique at San 
Francisco Airport and we have prided ourselves in being unique as an 
airport and the service that we provide. On the other hand, the 
expenditure is particularly troublesome. He said that staff hopes to 
generate an interest in prospective bidders to continue with this 
service at a more reasonable cost. If not, staff will return with 
another package which will reflect the Commission's wishes. 

Commissioner Murphy said that this is simply a request authorizing 
staff to seek proposals. The proposal will retain the option to the 
Commission to continue to provide free luggage carts in the 
International customs arrival area if the Commission elects to do so. 



Minutes, February 21, 1989, Page 7 



Commissioner Duval 1 said that a question should be added to the 
Airport's useage and attitude survey specific to the international 
traveler with respect to the relative importance of free luggage 
carts. 

Mr. Conrad Solberg, Smarte Carte, told the Commission that his 
company operates in over 70 airports and they are committed to 
working with Airport management and the Commission. He said that in 
the other 70 airports that they service, passengers pay $1.00 per 
cart and receive 25£ for a return. SFO is the only exception. He 
said that although they are willing to work within the Airport's 
wishes they do feel that this system automatically increases cart 
useage by 607. to 80%, thereby raising the cost. He said that 
additional carts are required and their liability insurance incidence 
goes up with these additional carts. He emphasized that they are 
willing to proceed under whatever system the Airport wants. 

Mr. Solberg said that they are proponents of the user-pay system. At 
LAX and JFK, their other large international arrivals areas utilizing 
the pay cart system, Smarte Carte has kept track of how many 
passengers lack the appropriate currency. If the Airport goes back 
to a user-pay system, Smarte Carte is willing to provide an employee 
in customs to make change for passengers for whatever length of time 
is necessary. In addition, they are developing equipment to accept a 
variety of foreign currency. 

Commissioner Goosby asked if the other international airports they 
service have the user-pay system. 

Mr. Solberg responded that there is a user-pay system in each of the 

22 international arrivals areas they service. He added that Heathrow 

currently operates a free cart system but they are looking at a 
user-pay system. 

Mr. Turpen said that the Airport is experiencing larger volumes in 
the international arrivals area and access to carts under the current 
system is better than it would be under a system where a passenger 
would first queue up to get change and then to get a cart. He asked 
for the opportunity for staff to take a look at this and return to 
the Commission with options. 

Commissioner Murphy said that what is important is that carts are 
available. Whether they are free or not is secondary. He also felt 
that most people who arrive at SFO have $1.00. 



Reallocation of $7,969,998 of Series D Bond Funds 

No. 89-0031 Request for approval to reallocate 

$7,969,998 of Series D bond funds to 
the groundside cost center. 

Commissioner Goosby asked how much was left of the Five Year Plan. 

Ms. Gittens responded that $4-mi 1 1 i on remained from other sources. 

Commissioner Goosby asked what capital improvements remained for the 
approximately $1 2— mi 1 1 i on left in the fund. 

Ms. Gittens responded that approximately $65-mi 1 1 i on remained on the 
plan. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations and 
Minutes, February 21, 1989, Page 8 



Maintenance, added that unlike the M&R Program for the terminals, the 
Five Year Plan is constantly evolving and updated every year. He 
said that the Five Year Plan never ends, with facilities being 
replaced and modernized every year. 

Mr. Turpen added that $ 1 5-mi 1 1 ion to $20-million per year is put into 
capital facilities whether for replacement or modernization. 

Commissioner Goosby asked if another bond issue was anticipated for 
later this year. 

Ms. Gittens responded that one was anticipated, depending on the 
development of the master plan. A bond issue is not anticipated for 
the routine capital plan items. 

Mr. Turpen said that the master plan will be above and beyond any 
routine on-going capital maintenance project. He said that there are 
two plans. If the Airport is not involved in any major developmental 
work, i.e. the $600-mi 1 1 ion modernization program which was just 
completed, it is involved in routine capital expenditures for 
facility maintenance, and maintenance of roadways, taxiways, runways, 
etc. 

Ms. Gittens said that a modification to the plan will be presented at 
the next meeting at which time the Commission will be brought up to 
date. 



Exercise Option of Airport Parking Management Operating Agreement 

No. 89-0032 Resolution exercising fourth one year 

option for the Airport Parking 
Management Operating Agreement. 

Mr. Turpen explained that this item requests approval for the fourth 
of five one-year options for Airport Parking Management, under the 
current operating agreement. Airport Parking Management. Subsequent 
to the Commission's approval, a Prop J analysis will be done and 
forwarded to the Board of Supervisors under the City requirement that 
a determination be made that this operation is cheaper to do by 
contract rather than in-house. 

Commissioner Bernstein asked if audits are performed. 

Ms. Gittens responded that financial audits are performed twice a 
year on this contract. Operational audits are performed once or 
twice a year as wel 1 . 

Commissioner Goosby asked if this is the biggest grosser on the 
Airport. 

Ms. Gittens responded that it is. 

Mr. Turpen added that approximately 5 to 5.2-million vehicles use the 
garage each year. On a particular day over the holidays 
approximately 27,000 vehicles entered and left the garage. 

Commissioner Duval 1 assumed that these options are tied to certain 
performance criteria and that was the purpose for staging the 
agreement on a series of five one-year options. 

Mr. Turpen responded that it is handled this way due to a legal 
impediment. The Airport cannot issue the contract for more than one 



Minutes, February 21, 1989, Page 9 



year at a time. This is a management contract where the revenue 
flows to the City and the Airport reimburses the operator for 
expenses. He said that the bid amount is a percentage plus expenses. 

Commissioner Goosby added that prior to this it was bid as a straight 
concession. The Airport now has control under the management 
contract. 

Mr. Turpen said that the nice part of the contract as it is presently 
structured is that we have a lot of control in terms of authorizing 
additional cashiers, security, custodians, etc. He said that this 
system has been in place for eight or nine years and has worked 
well. Complaints from the public have been minimal. 



On-Airport Rental Cars: Lease Extension 

No. 89-0033 Resolution authorizing a one-year 

No. 89-0034 extension for the concession 

No. 89-0035 agreements with the five On-Airport 

No. 89-0036 Rental Car operators. 

No. 89-0037 

Mr. Turpen said that this item requests five one-year lease 
extensions under the same conditions on the five rent-a-cars. The 
Airport is presently in the middle of the master plan which will 
effect the long term or intermediate term location of the 
rent-a-cars. He said that by waiting a year it would give the 
operators a better idea of what they're bidding on. It would be 
premature to move ahead now as plans have not been finalized with 
respect to how rent-a-cars will be handled in the future. 

Commissioner Murphy asked if the rent-a-cars pay a percentage of 
gross revenue as rent, or, a percentage of gross revenue and site 
location rent. 

Ms. Gittens responded that they pay 10 percent of gross revenue plus 
rent on counter space and the land they occupy. 

Commissioner Murphy asked if this proposal will renew both counts. 

Ms. Gittens responded that it would. She explained that the ticket 
counters and the land they occupy are on 30-day permits. 

Commissioner Murphy asked if the $13,607,692 figure is just the 10 
percent. 

Ms. Gittens responded that that was correct. The rent on the land 
and the ticket counters comes to about $300,000 per year. 



5. Authorizion to Conduct a Pre-Bid Conference for Operation of Public 
Lockers and Over-the-Counter Baggage Storage Services 

No. 89-0038 Resolution authorizing a Pre-Bid 

Conference for operation of Public 
Lockers and Over-the-Counter Baggage 
Storage Service. 

Mr. Turpen explained that this is a renewal of the public locker 
contract as well as the long-term baggage storage area which the 
Commission authorized. The percentage rates will remain the same. 



Minutes, February 21, 1989, Page 10 



Mr. Turpen thanked Amlock, formerly American Locker, for their 
tremendously responsive attitude when, due to certain world tensions, 
the Airport asked them to close the lockers in certain areas and 
relocate them. Amlock responded immediately and positively. Their 
first response was to move ahead and do it and then talk about how 
that would effect their contract. 



Authorization to Permit Video Games in the International Terminal 

No. 89-0039 Resolution authorizing a permit for 

the installation of Video Game 
machines in the International Terminal 
on a trial basis. 

Mr. Turpen said that permits are not authorized without the 
Commission's consent. This game room will be installed on a 
temporary basis in order for staff to evaluate its viability. If the 
idea appears to be sound, staff will proceed on a more formal basis. 

Commissioner Stephens asked where the game room will be located. 

Ms. Gittens responded that it will be located in an area where there 
are currently vending machines. 

Ms. Gittens said that the proposal is to have the current vendor in 
the North Terminal operate this service on a month-to-month permit. 

Commissioner Duvall asked how much revenue they currently generate. 

Ms. Gittens responded that the North Terminal operation currently 
generates about $100,000. 

Commissioner Duvall asked if there are any security issues. 

Ms. Gittens responded that the game rooms are staffed during 
operating hours. 

Mr. Turpen added that no problems have ever been brought to his 
attention. He said that this month-to-month permit would not be 
authorized for more than six months. At the end of that period staff 
will return to the Commission with their findings. 

Commissioner Goosby asked how staff arrived at a video game room as 
opposed to a hot dog stand or a newsstand. 

Ms. Gittens said that staff would like to place a hot dog stand in 
that area as well, however, that's been held up by other issues. 
Staff does not feel that a newsstand is important in that area. She 
said that staff found that there are typically a lot of kids and 
young people in that area. 

Ms. Gittens said that there is a flower cart in that area in the 
summertime and that has done well. 

Mr. Turpen said that since San Francisco is on the cutting edge of 
Airport concession programs there is no benchmark from which to 
evaluate whether or not a particular concession will do well in a 
given area. Because of that staff is often placed in a position of 
taking a look at the market and anticipating the viability of 
particular concessions. 

Commissioner Duvall asked if staff had plans for food service in that 
Minutes, February 21, 1989, Page 11 



area. She said that her own personal experience indicates that a 
food and beverage facility is needed in that area. 

Ms. Gittens said that the Host option proposal calls for an arrivals 
snack bar concept. Staff will move ahead with that concept whether 
the option is granted or not. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

7. Resolution Ratifying Personnel Actions 

No. 89-0040 Resolution, in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



Award of Contract No. 2024: 

(R2), Carpet Replacement Buildings 646 and 676 

No. 89-0041 Resolution awarding Airport Contract 

No. 2024 (R2), Carpet Replacement 
Bui ldings 646 and 676. 



9. Bid Call - Contract No. 2067 



Timber Pile Repair, Runway Approach Light Trestles 

No. 89-0042 Resolution approving the scope, budget 

and schedule for Airport Contract No. 
2067 and authorizing the Director of 
Airports to call for bids when ready. 



10. Modification No. 2 to Continental Airlines Lease and Use Agreement 
No. 82-0316 

No. 89-0043 Modifies Continental Lease and Use 

Agreement by relinquishing 71 square 
feet of Category I space back to the 
City. 



1 1 . Declaration of Emergency: 

International Terminal 8" Diameter Sewer Line Repair 

No. 89-0044 Resolution ratifying the action of the 

President of the Commission in 
declaring an emergency because of a 
sewer line failure at the 
International Terminal and directing 
the Director of Airports to effect the 
necessary repairs. 

Minutes, February 21, 1989, Page 12 



G. NEW BUSINESS: 

There was no discussion by the Commission, 



H. CORRESPONDENCE: 

There was no discussion by the Commission, 



J. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:45 AM to go into closed session. 




Caramatti 
fommi ssion Secretary 



Minutes, February 21, 1989, Page 13 



l 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

APR 1 g 1988 



MINUTES 



MARCH 7, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

March 7, 1989 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER: 


B. 




ROLL CALL: 


C. 




ANNOUNCEMENT B 


D. 




DIRECTOR'S REP 



RESOLUTION 
NUMBER 



PAGE 



Status of Denied Variances - 
Verbal Report 

AVI System 

Report on Commission Policy on 
Airline Leases - Verbal Report 



3-4 
4 

4-5 



ITEMS INITIATED BY COMMISSIONERS: 

Bid Specifications for Retail 
Concessions 



5-6 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Modification to Specifications 

for Duty Free, In-Bond 

Concession Lease 89-0047 

Resolution Awarding Lease for 

California Products Shop - 

North Terminal 89-0048 

Revisions to the Five-Year 

Capital Projects Plan 89-0049 



6-7 

7 
7-9 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

Resolution Recommending that the 
Board of Supervisors Adopt an 
Ordinance Authorizing the 
Airports Commission to Enter into 
Hold Harmless Agreements with 
Governmental Entities for Airport 
Police Officer Training 89-0050 



Award of Contract No. 2090: 

Re-Roof Building 646 (Airborne 

Bldg.) 89-0051 

Modification of Professional 
Services Contract No. 2130 - 
T.Y. Lin - Upper Level Road, 
South Terminal - Concrete Slab 89-0052 



H. NEW BUSINESS: 

Commendation for Danielle 

Kenealey 89-0053 9-10 

Master Plan 10 

I. CORRESPONDENCE: 10 



K. ADJOURNMENT TO GO INTO CLOSED 

SESSION: 10 



Minutes, March 7, 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

March 7, 1989 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 



Morris Bernstein, President 
Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 



J. CLOSED SESSION: 

The meeting recessed at 9:01 AM to go into closed session and reconvened 
at 9:17 AM. 



C. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary announced 
unanimous adoption of resolution no. 
89-0045 and 89-0046 regarding the 
settlements of litigated claims at the 
closed session of February 21, 1989. 



DIRECTOR'S REPORTS: 

1 . Status of Denied Variances - Verbal Report 

Mr. Lou Turpen, Airport Director, reminded the Commission that 
Northwest, Canadian and Braniff were denied variances to operate at 
San Francisco International Airport. He said that Braniff and 
Canadian have requested the Commission's reconsideration. Those 
requests for reconsideration have been forwarded to the Commission 
under separate cover and will be scheduled for Commission 
consideration on March 21, 1989. 



Minutes, March 7, 1989, Page 3 



Mr. Turpen said that Braniff is asking for a 90-day variance in order 
to put new aircraft on-line in San Francisco. Canadian's request is 
more involved and he said he would communicate his views on that 
request in the next week to ten days. He said that although official 
word has not yet been received from Northwest, he has heard 
unofficially that they will come into compliance by April 1st with a 
stage III nighttime operation. 

Mr. Turpen said that his initial reading of Canadian's letter is that 
they have simply restated their previous position. He will have to 
examine it more closely to determine whether or not there is any 
substantial change that would warrant the Commission's favorable 
review of their request for reconsideration. 



Mr. Turpen addressed the issue of the Airport's Vehicle Identifica- 
tion System and told the Commission that the system is presently in 
operation and staff is very pleased. The Commission has been 
provided with a time-sequence printout of activity by vehicles which 
are required to participate. He said that there are a number of 
reports which can be generated by this system. It is his understand- 
ing that these reports can be called up from a menu and he hoped to 
have examples of some of the types of reports on specific companies, 
specific numbers of trips, specific hours, etc. within the next few 
weeks. 

Commissioner Duval 1 felt that the most helpful type of report to the 
shuttle bus operators would be a report on the number of trips by 
vehicle. She said that she would be interested to see one of them. 

Mr. Turpen said that this system is an excellent management tool. 
The number of recorded trips has surpassed even staff's expectations. 

Commissioner Goosby asked how much this system cost. 

Ms. Angela Gittens, Deputy Director, Business and Finance, responded 
that it cost $200,000. 

Mr. Turpen added that this was a good investment and the Airport will 
recover the cost in a short period of time. 

Commissioner Duvall asked if these reports were being submitted to 
the operators. 

Mr. Turpen responded that each company will receive its own listing 
so they can examine the activity of their personnel. 

Commissioner Stephens asked if the printout will be sent with the 
bill. 

Mr. Turpen responded that it would. 



2. Report on Commission Policy on Airline Leases - Verbal Report 

Commission policy regarding provisions 
in airline leases for new terminal 
space and for lease renewals. 

Mr. Turpen said that there are two philosophies of leasing which 
exist. In the United States, traditionally, airports lease property 



Minutes, March 7, 1989, Page 4 



to airlines on a long term basis. Internationally, particularly in 
Asia, there is an alternate view that facilities are leased on an 
as-needed basis and put in a common use pool. He said that most of 
the traffic in Asian airports is international. 

Mr. Turpen said that the two systems were blended in San Francisco. 
We use the long term lease program in the domestic terminals. In the 
International Terminal the Commission has opted for a quasi common 
use format where all of the gates, bag claims and outbound bag system 
are common use facilities. He said that when this agreement was 
entered into in 1981 and the common use concept was negotiated for 
the first time ticket counters, office space to support ticket 
counters and office space to support ramp level operations were 
dedicated on a long term basis. The demand for ticket counter space 
is increasing and we are faced with an opportunity in 1991 to recover 
that space from several airlines who opted for ten year leases in the 
International Terminal rather than 30 year leases. 

Mr. Turpen said that over the next month or two the Commission should 
take a look at what the policy has been Airport-wide, particularly in 
view of recent conversations about the need for a new arrivals 
facility for customs processing. The Commission will have to 
determine whether the quasi common use format should be continued, 
whether it should go to a complete common use format wherein airlines 
will be given permits to operate in the terminal, or, whether the 
Airport should default to the traditional U.S. view wherein the 
facilities are leased on a long term basis. Staff will be preparing 
a working paper for the Commission which will provide available 
options. At that time the Commission can provide direction 
appropriate to the expiration of those leases in July, 1991. 

Mr. Turpen said that the philosophy has always been that long term 
commitments from the airlines help to underwrite the operation of the 
Airport and are therefore very attractive. On the other hand, 
flexibility is important in areas such as international operations 
where an airline may have only one flight a day. 

Mr. Turpen said that he was not convinced that the Asian system was 
necessarily right for San Francisco. On the other hand, neither was 
a wholly American system. He felt that some blend of the two would 
best suit SFO. 

Commissioner Duval 1 asked if the international gates were common use. 

Mr. Turpen said that international gates, holdrooms, bag claim and 
domestic bag claim in the International Terminal, as well as the 
out-bound and in-bound bag systems and flight information displays 
are all common use. The only areas not common use are ticket 
counters, back office space and ramp level and VIP rooms. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Goosby said that current bid specifications require a year or 
two retail experience. He asked whether professional medical /dental /legal 
office experience would qualify as retail experience. He said that those 
individuals deal with the public, collect money, keep books, pay insurance 
and handle the payrol 1 . 

Ms. Gittens responded that if retail experience is required, then that 
type of experience would not qualify. There are leases where business or 



Minutes, March 7, 1989, Page 5 



management is required. She said that when we require retail experience 
we are looking for experience in selling goods to the public. 

Commissioner Goosby argued that just because an individual does not own a 
retail shop does not mean he or she does not have business experience. He 
did not feel that this criteria was justified. He said that the Urban 
Economic Development Corporation is anxious to encourage minorities, and 
blacks in particular, to go into business, yet we are excluding a whole 
group of competent professionals in the retail business by having 
arbitrary criteria. 

Commissioner Goosby asked if the specifications have gone out for the Gate 
64 space. 

Ms. Gittens responded that the pre-bid conference has not yet been held so 
the specifications have not gone out. 

Mr. Turpen said that the Commission will have the opportunity to change 
the criteria after the pre-bid conference. 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were adopted unanimously. 

3. Modification to Specifications for Duty Free, In-Bond Concession Lease 

No. 89-0047 Lease modification to provide that 

Minimum Annual Guarantee will not 
increase in the event that Lessee is 
required to expand the size of its 
demised premises due to implementation 
of the Airport's Master Plan. 

Ms. Gittens told the Commission that because of a certain amount of 
confusion resulting from our current formulation of plans for a 
potential new international arrivals building we have created in the 
minds of potential bidders a fear that sections of the lease will 
come into effect that they cannot now predict. At this point we 
don't know whether or not we will be building a new international 
arrivals building. If we do build such a facility will it fall 
within the term of this lease which will run until the end of 1994, 
and, if it is within the term of this lease, how big will it be? 
These are all very preliminary thoughts that we are currently 
considering and we felt that by taking at least a major portion of 
the financial uncertainty out of the equation that we would stimulate 
the number of bids as well as the size of bids. 

Mr. Turpen said that this change clears the air and the Commission 
can set any timing it wishes on its facilities development. He felt 
that because of the requisite negotiations with Pan Am and United the 
probabilities are that any concept, if it comes to fruition, will 
probably do so near or at the term of this lease. He felt that these 
changes would promote a good bidding environment and at the same time 
remove a lot of the uncertainty which has concerned some of the 
prospective bidders. 

Commissioner Bernstein asked if there was a reason for the urgency. 

Mr. Turpen responded that this existing contract expires in July. 
There is no reason not to proceed in July, or, in time to rebid the 



Minutes, March 7, 1989, Page 6 



contract. There is no further certainty which will accrue to this 
subject in the next six to nine months at the minimum, or possibly 
even the next 19 months. He said that the picture is hazy right now 
and to try and forecast accurately when that picture would become 
clear would be inappropriate and would cause the lease to be bid a 
year later, pushing it further into the projects time frame. He did 
not see any reason to add constraints by pushing the Airport into 
that time frame. This needs to go forward now. 

Commissioner Duvall said that the longer we wait to put this contract 
out to bid the greater the likelihood there will be of creating a 
major interruption in the business operations during the term of the 
contract. 

Mr. Turpen said that if he could have put it out to bid earlier he 
would have been even more secure in saying that there would not be an 
interruption. 

Commissioner Bernstein was concerned that there not be a disruption 
of the business. 

Commissioner Duvall responded that the disruption of the business 
will occur by virtue of the new International Terminal being 
completed and these business premises having to be moved. The 
likelihood of that happening within the next five years is remote. 
If we wait a year it will be that much more likely that the terminal 
will be completed and we will have to disrupt this contract and go 
through the repurchase of the unamortized leasehold improvements. 

Ms. Gittens emphasized that the Commission is only being asked to 
approve the change in specifications at this time. 



Resolution Awarding Lease for California Products Shop - North 
Terminal 

No. 89-0048 Resolutionawarding the California 

Products Shop lease to partnership of 
Donald Chin, Jayne Chew and May Le DBA 
Lakeshore Liquors 



Item No. 5 was adopted by a 4 to 1 vote, with Commissioner Bernstein 
casting the dissenting vote. 

5. Revisions to the Five Year Capital Projects Plan 

No. 89-0049 

Mr. Turpen told the Commission that the airlines voted to disapprove 
the projects listed on page two of his memo to the Commission. He 
explained that under the terms of the lease and use agreement there 
is a six month hiatus before these projects can go forward. The 
airlines do not have the right to disapprove projects in our capital 
plan, they only have the right to build in a cooling off period 
during which time they might be able to convince staff and/or the 
Commission that these projects are not appropriate. At the end of 
the six month period the Commission is then free to proceed. 

Commissioner Murphy asked why the airlines were opposed to parking 
lot DD. 



Minutes, March 7, 1989, Page 7 



Ms. Gittens responded that there was no opposition to this project 
when staff met with the airlines, however, United was not represented 
at that meeting. Given other discussions that are going on with 
respect to space that we might want them to give up, United feels 
that to proceed with this project would foreclose that opportunity. 
She said that it should not be a problem for very long. 

Mr. Turpen explained that this is the lot adjacent to the MOC. This 
project would impact the vacant parcel which is adjacent to United's 
parking facilities and the MOC so they see this as a natural 
geographic opportunity for them. In view of other discussions 
surrounding the new International Arrivals Building and the 
relinquishment of space, United hopes that by delaying this six 
months they might be able to convince the Airport that this might be 
a fair exchange or at least part of an exchange. 

Commissioner Bernstein asked if any thought is being given to the 
future so that additional projects are not added to these Five Year 
Plans. He asked why this wasn't thought of years ago. He complained 
that without a constant flow of money this type of planning would put 
a company into bankruptcy. 

Mr. Turpen responded that by careful planning the Airport does have a 
constant flow of money. He said that to do all of these projects 
simultaneously would cost a considerable amount of money. It would 
cause the Airport to go into the bond market in an excessive way and 
would dramatically impact the Airport, its operations and the people 
who use it. It would be no problem if we were building a new Airport 
in the middle of nowhere. He said that SFO is 60 years old and sits 
on 2200 acres. Staff is trying to progressively improve the Airport 
and at the same time minimize the inconvenience to passengers with a 
view towards the economics. 

Mr. Turpen said that the Five Year Plan is staff's projection of what 
is required at the Airport based on a change in environment. In 1979 
there was no deregulation. There is now a liberalization of that 
along with a liberalization of international routes and the 
acquisition of Pan Am's Pacific routes by United. We are in a 
changing environment and we are obligated to change with it. This 
plan recognizes the environment, projects the environment we 
anticipate being in and tries to respond to it. As an example, he 
said that all of the off-Airport long term rental car lots are 
closing. This presents the responsibility and the opportunity for 
SFO to provide parking for those persons who wish long term parking 
and at the same time creates a unique opportunity for us to derive 
revenue from what was previously an off-Airport revenue source. 

Commissioner Murphy asked when work would commence. 

Mr. Turpen responded that he thought it would possibly be 18 months 
before work would start, based on the six month hiatus. 

Commissioner Murphy said that as he understood it the airlines have 
30 days to approve or disapprove proposed capital expenditures. If 
the airlines disapprove an expenditure then there is a six month 
cooling off period. As the airlines failed to do anything during the 
30-day period, the capital expenditures are approved. He said that 
the only basis for argument here is that possibly United wants to do 
something else with this space, although they haven't said anything 
about it. 

Mr. Turpen added that there have not been any official negotiations 
in this regard, however, comments have been made by certain 
individuals. 



Minutes, March 7, 1989, Page 8 



Commissioner Duvall said that their silence is a tacit agreement. 

Mr. Don Garibaldi, Airports General Counsel, added that each project 
will have to come before the Commission for approval. 

Mr. Turpen said that it is important for the Commission to know that 

staff constantly monitors off-Airport parking availibility and tries 

to forecast what the Airport would do to dovetail with it. He said 
that we have a little time, but not a lot. 



G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

6. Resolution Recommending that the Board of Supervisors Adopt an 
Ordinance Authorizing the Airports Commission to Enter into Hold 
Harmless Agreements with Governmental Entities for Airport Police 
Officer Training 

No. 89-0050 



Award of Contract No. 2090: 

Re-Roof Building 646 (Airborne Bldg.) 

No. 89-0051 Resolution awarding Contract No. 2090 

to California Roofing Co., Inc. 

Commissioner Bernstein asked how long ago the roof was put on. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations and 
Maintenance, responded that the roof is over 20 years old. 

Commissioner Goosby asked why the low bidder did not receive the bid, 

Mr. Bouey apologized for the way the item was written and explained 
that there were three lower bidders. Two did not receive HRC 
approval, and one did not have the experience required in the 
specifications. 



Modi 


fication 


of 


Professional 


Services 


Contract 


No 


. 2130 


T.Y. Lin 
Upper Level 


Road 


South 


Termina" 


1 - Cor 


icrete 


SI, 


ib 


Repair 



No. 89-0052 Resolution modifying T.Y. Lin 

Professional Services Contract No. 
2130 authorizing coring of upper level 
roadway. 



H. NEW BUSINESS: 

Mr. Turpen introduced a resolution commending the services of Danielle 



Minutes, March 7, 1989, Page 9 



Kenealey of the City Attorney's Office who will be leaving the Airport 
shortly for another position. 

The Commission voted unanimously to adopt the resolution. 

No. 89-0053 



Mr. Turpen said that staff will be presenting the Commission with the next 
working paper of the master plan. The working paper should be out in 
mid-March. Meetings have been set up at the Airport for members of the 
Commission to go over the plan. Additional meeting times can be set up to 
accommodate a Commissioner's schedule. 

Mr. Turpen said that this item should be coming before the Commission on 
March 21. The plan will go out to approximately 300 people. 



I. CORRESPONDENCE: 

There was no discussion by the Commission 



ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:50 AM to go into closed session. 



/Jean Caramatti 
Cimmi ssion Secretary 



Minutes, March 7, 1989, Page 10 



A4b 
1*2 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

3 1989 

SAIM 1-KAiMOiaCO 
oiiBi.ir. «.IBRARY 



MINUTES 



MARCH 21, 19 89 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

March 21 , 1989 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: • 

B. ROLL CALL: | 



DIRECTOR'S REPORTS: 

1. Master Plam - Response to 
Norking Paper 'B' - Verbal 

Report 3 

2. Report on Child Care - Verbal 

Report 3 



ITEMS INITIATED BY COMMISSIONERS: 
HRC - Prime Contractors 3-4 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

3. Reconsideration of Variance 

Denial - Canadian Airlines 4-5 

4. Reconsideration of Variance 

Denial - Braniff, Inc. 89-0054 5-6 

5. Increase to FY 1989/90 Budget 

for Free Luggage Carts 89-0055 6 

6. Emergency Medical Services - 
Reimbursement for Unpaid "Mini- 
Ambulance" Calls 89-0056 6-7 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

Contract No. 2065: Airport 

Beacon - Type II Modification 89-0057 8 

Declaration of Emergency: 

Cont-'act No. 2190: Taxi way ' A 

8^-Inch Industrial Waste P-peline 

Repair 89-0058 8 

Resolution Ratifying Personnel 

Actions 89-0059 8 



G. NEH BUSINESS: 

H. CORRESPONDENCE 



ADJOURNMENT TO GO INTO CLOSED 
SESSION: 



M i tes , March 21 , 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

March 21 , 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Donald R. Stephens 
Patrick A. Murphy 

Z.L. Goosey, Vice President, arrived 
at 9:05 AM 

Absent: Sharon B. Duvall 



DIRECTOR'S REPORTS: 

1 . Master Plan - Response to Working Paper 'B' - Verbal Report 

Mr. Lou Turpen, Airport Director, told the Commission that Norking 
Paper 'B' was circulated for comments and staff has been developing 
responses. Both the comments and responses are being compiled into 
single document and will be provided to the Commission within the 
next week to 10 days. On April 4 staff will ask the Commission for 
its permission to release the response to Working Paper 'B' to the 
general public. 



2. Report on Child Care - Verbal Report 

Mr. Turpen said that Sharon Johnson of the Mayor's Office chaired a 
meeting on March 10 at the Airport regarding the child care project. 
As a result of that meeting two sub-committees were formed. One 
sub-committee will address the survey in terms of its validity and 
updating it. That survey was designed to determine and quantify the 
need for a child care facility. The Airport will also participate on 
the site selection sub-committee. That sub-committee will oe looking 
at various sites both on and off-Airport and evaluating them against 
a specific set of criteria appropriate to child care facilities. He 
said that in the event that that survey confirms the results of an 
earlier survey then a site s>n or -^ear the Airport would be 
appropriate. The site selection committee will then try to determine 
what sites might be available. He said that botn sub-committees will 
be meeting next week . He w^ll continue to keep the Commission 
advised of the ccmn.it tee's efforts. 

Minutes, March 21 , 1989, ?age 3 



D. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Goosby said that the Human Rights Commission's MBE ordinance 
states that there is supposed to be a 10% goal for prime contractors. 

Ms. Angela Gittens, Deputy Director, Business and Finance, told the 
Commission that under the current ordinance the minimum goals are 10% for 
minorities and 10% for women. She explained that what that means is that 
if a Department feels it's not going to make those levels it can request a 
set aside in upcoming contracts. 

Commissioner Goosby asked if the Airport will meet its prime contractor 
goal . 

Ms. Gittens responded that we are well over that goal. 

Commissioner Goosby asked how we were doing with the WBE goal. 

Ms. Gittens responded that we are just about there. 

Commissioner Goosby asked if the Airport considers sub-tenants as prime 
contractors . 

Ms. Gittens said that we do not. 

Commissioner Goosby asked if this covered construction work. 

Ms. Gittens responded that it did. She said that this year we've had 84% 
minority participation in prime construction contracts. 

Commissioner Goosby concluded that under the guidelines of the ordinance 
we have no grounds to ask for set asides. He asked if the City Attorney 
is recommending caution in that area pending the outcome of the AGC 
1 i tigation. 

Mr. Don Garibaldi, Airports General Counsel, responded that she is. 

Ms. Gittens added that there is a draft of the new ordinace as the current 
ordinance expires in May. The new draft has a number of changes in it. 

Commissioner Goosby asked that the Commission be briefed on the potential 
impact. 



E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 3 was put over to the April 4, 1989 Commission meeting. 

3 . Reconsideration of Variance Denie 1 - Canadian Airlines 

Application to reconsider the Airports 
Commi ssi:n' s denieal cf a variance 
requested by Canadian Airlines 
Internal tonal , Ltd. heard before the 
Commission on December 20, 1988. 

Mr. Turpen said that he has had conversations with Canadian as 
recently as late yesterday. Canadian indicates that there may be 

Minutes, March 21, 1989, Page 4 



some information forthcoming which will be material to the 
Commission's decision. In view of this he asked the Commission to 
put this matter ove-" unti 1 April 4. During the interim the Airport 
will have the opportunity to receive the information, evaluate it and 
share staff's reaction to this information with the Commission. 



Item No. 4 was adopted unanimously adopted. 

4. Reconsideration of Variance Denial - Braniff Inc. 

No. 89-0054 Application to reconsider the 

Airport's Commission's denial of a 
variance requested by Braniff Inc. 
heard before the Commission on 
December 20, 1988. 

Mr. Turpen told the Commission that this item speaks to Braniff s 
request for a variance through the period of November 1, 1989. 
Braniff was given until April 1 to either come into compliance or 
relocate their operations. Further, the Commission gave him the 
authority to extend that April 1 date to July 1 if he felt the 
circumstances warranted such an extension. Since presenting its 
original testimony to the Commission, Braniff has acquired stage III 
aircraft, 16 airbus A320s. These aircraft are fully compliant with 
SFO's noise regulation. Further, Braniff has committed to place the 
very first aircraft into service at SFO, which will bring them into 
33% compliance, versus the 25% mandate. 

Mr. Turpen told the Commission that the issue is time. Braniff will 
not acquire the aircraft until late in the second quarter of this 
year. Certifying the flight crews and putting the aircraft into 
service at SFO will require a few months. He said that Braniff 
commits to be in complaice by November 1, 1989 and recommended 
granting Braniff a variance until that date. 

Mr. Turpen said that the objective of the noise regulation is to 
bring airlines into compliance and to maintain the economic asset of 
SFO. He felt that this accomplishes both objectives. 

Mr. Curt Holtziner, member of the San Francisco Board of Supervisors 
Airport Noise Commitee, said that his Committee was not exposed to 
this variance nor are they opposed to the resolution oefore the 
Commission. The Committee is in favor of bringing airlines into 
complaince and Braniff has shown its intention to achieve that goal. 

Mr. Holtzinger said that the Committee has taken a reasonable stand 
and is trying to work with the Commission to maintain the economic 
viability of the Airport as well as insure quieter skies. 

Mr. Holtzinger added that members of the Committee made an effort to 
attend each of the variance hearings and put a lot of effort into 
it. He felt that the people who attended those hearings should be 
provided with the reappl ications and the supporting documentation. 
He said that there is no information available to the public at this 
meeting. He hoped that they could be provided with this information 
in the future. 

Mr. Turpen said that he would be happy to provide the information. 

Mr. Holtzinge" said that he provided both the Commission and Mr. 
Turpen with the Committee's assessment of Working Papers 'A' and 



Mil utes, March 21 , 1989, Page 5 



'6'. Mr. Holtzinger said that the Committee wanted to provide its 
insight and analysis. The City and County of San Francisco has been 
impacted by noise for approximately the last two years. The 
Committee is not opposed to expansion if noise is mitigated and 
reduced. 

Commissioner Goosby asked that they be placed on the appropriate 
mai 1 ing list. 



Item No. 5 was adopted by a 3 to 1 vote, with Commissioner Bernstein 
casting the dissenting vote. 

5. Increase to FY 1989/90 Budget for Free Luggage Carts 

No. 89-0055 

Mr. Turpen said that this request will increase by $500,000 the 
amount for free luggage carts in the customs arrivals area for the 
upcoming budget. He said that the matter has been brought to the 
attention of the Mayor's Office and that office will be addressing 
the issue from a policy perspective in this coming budget cycle. 

Commissioner Goosby said that that brings the cost of free carts to 
almost $2-mi 1 1 ion . He said that this is a very serious consideration 

that the Commission and this community must look at. 

Commissioner Murphy asked if the Airport still pays $1.00 per cart. 

Mr. Turpen said that we are. He reminded the Commission that when 
this mechanism was put into place passengers were still paying for 
carts in customs. 

Mr. Turpen added that this contract expires in July, 1990. Staff 
will explore options that will hopefully satisfy both objectives of 
minimizing cost and maximizing service. 

Commissioner Goosby said that he knew that Smarte Carte is the major 
company in this industry and asked if there were smaller companies 
that might be interested in this contract. 

Ms. Gittens responded that there is one smaller company but they did 
not express any interest the last time this contract came up. She 
said that a pre-bid conference for requests for proposals will be 
held on April 19 and should provide some indication as to whether or 
not additional interest is there. 



6. Emergency Medical Services - Reimbursement for Unpaid "Mini- 
Ambul ance" Cal 1 s 

No. 89-0056 Resolution amending the permit 

agreement with the Airport Medical 
Clinic to authorize the Airport's 
reimbursement to the clinic for those 
"mini ambulance" call invoices that 
are unpaid after a sixty-da> oe-'iod. 

Mr. Turpen explained that the Airport Medical Clinic has operated on 

the Airport for many years and was probably the first of its kind in 

the United States. He said that a subsidy of about $100,000 per year 

was paid to the Medical Clinic up until 1982 or 1983. The Commission 



Minutes, March 21, 1989, Page 6 



elected to pursue an alternate course in the rebid of this contract 
by provding a rent subsidy which would allow the Medical Clinic to 
occupy space rent free. In exchange for that free rental the Medical 
Clinic was to provide 24-hour service, 7 days a week, 365 days a 
year. That amount which has been forgiven is just about awash with 
the 24-hour operation and with the other services that the Medical 
Clinic provides in support of our emergency response red cap drills. 

Mr. Turpen said that the one area that has clearly been an 
unanticipated problem is the question of mini-ambulance calls. The 
Airport has a number of golf carts which have been equiped as mini- 
ambulances for the purpose of responding to any emergency within the 
Airport terminals. Typically, a Police Officer drives the mini- 
ambulance, taking a physician from the Medical Clinic to the site of 
the call. The mini-ambulance is fully capable of supporting and 
sustaining life and we have had excellent success with this program. 

Mr. Turpen said that in discussions with the Medical Clinic earlier 
this year it became obvious that a number of mini-ambulance calls 
were not being paid for because the patrons felt that this was a 
service of the Airport. These unpaid bills average $50,000 a year. 

Mr. Turpen said that he has met with the major airlines on two or 
three occasions and they are in agreement that they want to continue 
this type of responsiveness. 

Commissioner Goosby asked if this is a cost center question. He also 
asked if this was required under the Lease and Use Agreement. 

Mr. Turpen responded that this is not a cost center issue. Clearly, 
many airline employees and passengers are involved. He said that 
because this was a little out of the ordinary he wanted to run it by 
the airlines. This is an incremental cost that will go right back 
across landing fees and terminal rentals so that, in effect, they are 
going to be paying the bill. 

Mr. Turpen said that the airlines are in agreement. If the 
Commission agrees, the Airport will reimburse the Medical Clinic for 
those bills that remain unpaid after 60 days. If a bill is 
subsequently paid or results in a settlement/litigation with the 
Airport, then it will be factored out of future payments on an 
adjusted basis. 

Commissioner Goosby said that customary procedure is to send bills to 
a collection agency if they have not been paid within 90 days. He 
assumed that that same time frame would be followed here. He said 
that the Airport should receive proof that a bill was actually sent. 

Mr. Turpen said that all mini-ambulance calls go through the 

Airport's communications system so we have a record of every call 

initiated at the Airport and an actual count of how many calls go out 
during the year. 

Mr. Turpen told the Commission that there is one more year left on 
this contract. It is staff's intention to incorporate this into the 
rebid for the Medical Clinic in July, 1990, along with the '"e n t 
subsidy, to cover the 24-hour operation. 

Commissione Goosby asked if their hours had been reduced. 

Mr. Turpen respond j that he had been given the authority to reduce 
the hours but upon reconsideration of the issues involved he decided 
not to reduce them. 



Minutes, March 21 , 1989, Page 7 



F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

7. Airport Contract No. 2065 : 

Airport Beacon - Type II Modification 

No. 89-0057 



Declaration of Emergency 

Airport Contract No. 2190: 

Taxiway 'A' 8-inch Industrial Waste Pipeline Repair 

No. 89-0058 Resolution ratifying the action of the 

President of the Commission in 
declaring an emergency because of an 
industrial waste pipeline failure at 
Taxiway 'A' and directing the Director 
of Airports to effect the necessary 
repairs. 



Resolution Ratifying Personnel Actions 

No. 89-0059 Resolution in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken py the Director of Airports. 



G. NEW BUSINESS: 

There was no discussion by the Commission. 



H. CORRESPONDENCE: 

There was no discussion by the Commission, 



J. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at ?:27 AM in order to go into closed session. 

Jean Caramatti 
Commission Secretary 

Minutes . March 21 , 1989, Page 8 



h SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

MAY 3 1 1989 

SAN j-KAiMCI&UQ 
diioi.io. t moApv 



MINUTES 



APRIL 18, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

April 18, 1989 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: : 

B. ROLL CALL: ■ 

C. ADOPTION OF MINUTES: 



Regular meeting of 

March 21 , 1989 89-007' 



ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS h MAINTENANCE: 

1. Assignment of Eastern Air Lines', 
and Relinquishment of Space from 
United Air Lines to Airports 

Commission 89-0072 3-4 

2. Authorization to Accept Bids: 
North Terminal, Gate 64 

Newsstand Lease 5-8 

3. Bid Call - Contract No. 2195: 

North Field Public Access Road 89-0073 9 

4. Award of Contract No. 988R: 

Engineering Building Renovation 89-0074 9-10 

5. Bid Call - Contract No. 2196: 
Airport Perimeter Security 

Fence 89-0075 9 

6. Shuttle Bus Service Agree- 
ment No. 68252, Modification 

No. 6 89-0076 10 

7. Bay Area ShperShuttle R'ental 

Credit for Information Cabinets 89-0077 10-11 

8. Exercise Option to Extend Morla 
Design Contract for 1989 Annual 

Report 89-0078 11 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: . 

9. Approve Naming of Stephen T. 

Bow to SFAIC Board 89-0079 11 

10. Resolution Ratifying Personnel 

Actions 89-0080 11 



G. NEW BUSINESS: 



Invitation to AOCI to Hold 

Pacific Basin Conference in 

San Francisco in 1990. 89-0083 



H. CORRESPONDENCE: 12 



J. ADJOURNMENT TO GO INTO CLOSED 

SESSION: 12 



Minutes , Api i 1 18, 1989, Page 2 



Mi nutPS 

of the 

Airports Commission Meeting 

April 18, 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of March 21, 1989 were adopted by order 
of the Commission President. 

No. 89-0071 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 1 was adopted unanimously as amended. 

1 . Assignment of Eastern Air Lines' Space to United Air Lines and 

Relinquishment of Space from United Air Lines to Airports Commission 

No. 89-0072 

Mr. Lou Turpen, Airport Director, said that in July of last year 
Eastern Air Lines relinquished its space to United Air Lines and the 
Airports Commission is obligated under the Lease and Use Agreement to 
consent to that assignment. The Airport staff has been working with 
United to try to reconcile hov* this space will be relinquished. 

Minutes, Ap«- i 1 18, 1989, Page 3 



Those discussions were concluded within the last couple of days. He 
asked the Commission to consent to the assignment conditionally. The 
condition will be captured in a letter agreement between United Air 
Lines and the Airport within the next day or two and then fully 
captured in United's long term Lease and Use Agreement. The letter 
agreement is simply an interim measure until the lease is modified. 
The key provisions are the three areas of space, i.e. at the ramp 
level out on the airfield, in the terminal near the Northwest parking 
lot, and the former Eastern VIP space out on the concourse. Mr. 
Turpen said that upon receipt of this space United has agreed to 
immediately relinquish the VIP room to the Airport for the develop- 
ment of a concession. Further, United has asked to use the space at 
the west end of the North Terminal until June 1, 1992 for their 
operations. At that time they will relinquish that space to the 
Airport in time for the Airport to tie into any activities it 
anticipates for that terminal. 

Mr. Turpen felt that this was an effective solution. 

Commissioner Goosby asked if United was interested mainly in the ramp 
area. 

Mr. Turpen responded that they were. He said that it will stay in 
United's lease until 2011 and they will pay rent on all of it. He 
said that he is very pleased with the outcome as revenue will be 
generated from the space during a period when it would be of limited 
value to the Airport. Also, United has agreed to relinquish the 
space when it becomes of value to us. 

Mr. Turpen read from a letter written by Rick Street, United's Vice 
President for Airport Affairs, which captured one of the key areas to 
which United is committed. It stated: "...you may be assured that 
other than the requested temporary accommodations in the North 
Terminal, United would not conduct international operations from 
other than the International Terminal without the prior written 
consent of the Director of Airports." He said that United has been 
asked to commit to the use of the International Terminal for the 
obvious synergies and security concerns. United has reaffirmed their 
wi 1 1 i ngness to comply. 

Commissioner Bernstein said that this isn't United's first step in 
acquiring space for their own international terminal. 

Mr. Turpen responded that it is not. 

Commissioner Murphy responded that this is carefully designed to do 
the opposite. 

Mr. Turpen said that United will be using this for international 
operations on a temporary basis while they are rebuilding part of the 
International Terminal. 

Commissioner Bernstein said that we have been through this before 
with United and he does not intend to repeat history. 

Mr. Turpen said that he understood Commissioner Bernstein's question 
and his concerns and assured him that history will not repeat itself. 

Mr. Turpen said that the resolution will be approved subject to the 
development of a letter agreement between the Airport and United Air 
Lines. That agreement will lead to a lease modification which will 
embody the terms of the letter agreement. 



Minutes , Apr i 1 18, 1989, Page 4 



Item No. 2 was put over to the May 2 meeting. 

2. Authorizatin to Accept Bids: 

North Terminal, Gate 64 Newsstand Lease 

Ms. Angela Gittens, Deputy Director, Business and Finance, said that 
this lease will be a small business set aside and represents the 
first time the Commission will embark on constructing a retail 
facility for a tenant. She said that there has been a great deal of 
interest in this concession and felt that the bidding will be 
vigorous for this opportunity. 

Commissioner Goosby said that Duty Free has requested another two 
weeks to look at this space. 

Mr. Turpen responded that from staff's perspective there is no reason 
to continue thi s item. 

Commissioner Murphy asked if this space is located on the American 
concourse. 

Ms. Gittens responded that it is. Gate 64 is about two-thirds of the 
way down the concourse. This space was part of American Airlines 
hold room but is vacant at the present. 

Ms. Gittens said that Duty Free feels that this space will compete 
unfairly with their space which is located before security. She said 
that Duty Free indicated that they had been given to understand that 
there was no space on the pier. Ms. Gittens said that at the time 
that Duty Free secured the pre-security space, nothing was available 
past security. This opportunity became available when American 
Airlines reduced its activities and eliminated the need for this 
space. Ms. Gittens told the Commission that Duty Free wants to 
incorporate this space into their Boarding Area 'E' lease. She said 
that Duty Free has offered to provide a sub-leasing opportunity. 

Mr. Turpen told the Commission that this item is not time critical 
and can put it over if it wishes. 

Commissioner Goosby commented that there must be meaningful effort to 
implement the spirit of the small business affirmative action concept 
by constructing this space at the Airport's expense, with reimburse- 
ment by the operator over time. 

Mr. Turpen said that this program has proven to be an effective 
vehicle for the Airport. The Airport has grown in this process and 
this is the next logical step. He said that this can be folded into 
the principal concession concept but he did not necessarily believe 
that this would advance us beyond where we were. The principal 
concession concept is imperative to the Airport's continued vitality 
in the retail business, however, some small departure from our 
traditional approach as well as some experimentation with these types 
of opportunities will be worthwhile. That is the reason for his 
recommendation, fully recognizing why Duty Free has made their 
suggestion. He said that he does not want to tie all the space up in 
the principal concessionaire concept. Mr. Turpen said that he would 
be happy to put the item over if the Commission wished. 

Mr. David Suzuki, in-house counsel for Duty Free Shoppers, said that 
at the time the Boarding Area 'E' concession was put out to bid, Duty 
Free specifically recommended, both at the pre-bid meeting and in a 
letter, that a newsstand area be made available in the post-security 
area. He said that in reading a memo from staff to the Commission, 
summarizing comments made at the pre-bid conference he noted that the 



Minutes, Apr i 1 18, 1989, Page 5 



question of whether or not to move Young At Heart beyond Boarding 
Area 'E' security was based on a letter Duty Free wrote asking if it 
were possible to locate this shop in the area adjacent to Gate 63 or 
between Gate 65 and 67. The staff recommendation was to retain the 
original location as there was no available space beyond security in 
Boarding Area 'E'. Based on that information, Duty Free formulated 
their projections for a concession, put in their bid and made no 
allowance for any dilution of sales that would occur from a 
post-security newsstand. 

Mr. Suzuki said that there are a number of reasons why this would 
have a significant effect their business. He explained that the 
concourse is short so this additional newsstand would be visible from 
the security check-point and draw customers away from the 
pre-security principal concession space. In addition, many of their 
Boarding Area 'E' customers are American Airlines commuters and once 
they learn of the availability of a newsstand in the post-security 
area they will by-pass the pre-security concession and go straight to 
the newsstand. 

Mr. Suzuki said that they are arguing to the fairness of this 
situation. He said that once the concession has been bid and the 
conditions are stated it seems unfair to change those conditions at a 
later date. He recommended that the matter be put over in order to 
give Duty Free the opportunity to make additional comments on this 
matter. 

Commissioner Goosby said that before Duty Free bid the principal 
concession space they were told that there was no available space for 
a post-security newsstand. 

Commissioner Duval 1 commented that that is not what the record states 

Mr. Suzuki said that Duty Free was told that there was no available 
space beyond security at Boarding Area 'E'. 

Commissioner Murphy asked if Duty Free's existing concession 
agreement at the Airport precludes the Airport from building any 
concession it wishes at Gate 64. 

Mr. Suzuki responded that he did not think it did, nor is that their 
posi tion. 

Commissioner Murphy said he understood Duty Free's position to be 
that at the time that Duty Free bid on the principal concession space 
at Boarding Area 'E' they were told that there was no space available 
to build additional concessions past security. He asked Mr. Suzuki 
if Duty Free wanted to bid on this new space, or, if they want it 
given to them. 

Mr. Suzuki responded that after the pre-bid conference not only did 
Duty Free believe that no space was available past security, but that 
none was likely to become available in the forseeable future. 

Commissioner Goosby said that Duty Free feels that this will effect 
their cash flow in their other locations. 

Mr. Suzuki responded that Duty Free feels that the effect will be 
signif i cant . 

Commissioner Murphy commented that Duty Free's newsstand was much 
larger with more titles and a greater variety of reading material. 

Mr. Suzuki responded that that was correct however the post-security 
newsstand will still have a significant impact on their business. 

Minutes, Apr i 1 18, 1989, Page 6 



Commissioner Murphy asked Mr. Suzuki what it was he wanted the 
Commi ssion to do. 

Mr. Suzuki responded that their proposal was to include the Gate 64 
area within the Boarding Area 'E' principal concession and if that 
was done then they would negotiate with Airport management to provide 
an SBE opportunity at that location or ultimate location. 

Mr. Suzuki reminded the Commission that it voluntarily put in a 
minority business in the Boarding Area 'E' concession. He said that 
this particular concession has been set up as an SBE set aside, so 
for the sake of consistency Duty Free would be willing to put one in 
if this area was rolled into their concession. 

Mr. Turpen said that the Boarding Area 'E' principal concession area 
was originally designed with a set aside requirement which was 
essentially a Human Rights Commission action. There was no 
requirement for a set aside and the Airport bid the space as a 
straight business concession opportunity, with no minority 
participation requirement. Duty Free was the successful bidder and 
voluntarily put in such a program, recognizing the Airport's 
commitment to the principal concessionaire program, and inspite of 
the fact that the Human Rights Commission had not only indicated that 
there was no obligation to do so, but that it was not legal. 

Ms. Gittens explained that there is currently a newsstand and gift 
concession to the right of security screening and an ice cream/cookie 
parlor. To the left of the security screening is the California Shop 
and the Young at Heart Shop, which is part of the Boarding Area 'E' 
concession. Across from the Young at Heart Shop is the Pacific Catch 
and Carry, a deli/sea food operation. She said that the newsstand 
and gift shop, the Young at Heart concession and the Personalizing 
Shop are all part of the principal concession. There is another 
small shop which is part of this same concession on Boarding Area 
'F', past the Hub. In all, there are four locations: a minority 
enterprise is in two of the locations, the Personalizing Shop and the 
newsstand past the Hub. 

Commissioner Duvall asked Ms. Gittens what she felt the impact would 
be on the current newsstand. 

Ms. Gittens responded that she expected that there will be an impact 
but she did not care to hazzard a guess as to how big an impact there 
will be. She said that the offerings that will be carried by this 
particular newsstand will be a fairly small subset to those carried 
in the large news and gift area. She added that she felt that their 
point was that it is the news and books that draws customers into the 
shop and the other items are more discretionary. 

Commissioner Goosby asked if this space will have a gift section. 

Ms. Gittens responded that it could also have gifts but there is not 
that much space. 

Commissioner Murphy said that this will be essentially be the same 
amount of space as the newsstand in past the Espresso Bar in the Hub. 

Commissioner Goosby asked Ms. Gittens if, when the Boarding Area 'E' 
lease was bid, she felt that there was an implied commitment that 
there would be no competing newsstand in that area because there was 
no avai labl e space. 

Ms. Gittens responded that staff did not know that that space would 
become available. She said that this is not the first time something 



Minutes , Apr i 1 18, 1989, Page 7 



like this has happened. ABC Cigar bid their lease and operated in 
Boarding Area 'F' for many years, and then in 1985 a major 1000 sq. 
ft. shop was opened in the Hub. That space was originally United 
ticket counter space. She felt that the Hub shop certainly had a 
much greater impact on ABC Cigar than this will on the Boarding Area 
'E' shop. 

Commissioner Duval 1 asked if the reason that this space has become 
available is that American has decreased its level of operation in 
that area. 

Ms. Gittens responded that it is partially the Piedmont relocation. 
Also, they are running narrow bodies out of that area instead of 
wide-bodies . 

Commissioner Duvall assumed that the reason the Commission is looking 
for this particular use of space is because there is an increased 
demand overall in the area and she is therefore confused with Duty 
Free's claim of potential conflict. She assumed the Airport is 
looking at this space based on continuing a level of passenger 
service throughout the boarding area. 

Ms. Gittens agreed and added that it is also in response to 
complaints from passengers that there is nothing out in that area. 
If we had had the opportunity to develop that area before, we would 
have done so. 

Commissioner Murphy said that he i s a frequent user of that concourse 
and it is an annoyance not to have a newsstand out there. 

Commissioner Duvall said that there is a clear and demonstrated need 
for this use of space in that area. 

Commissioner Murphy said that what is being proposed in the 
resolution before the Commission is a small business set aside. Duty 
Free wants to negotiate that space into their principal concession 
lease and then lease that space themselves as a small business set 
aside. He said that the operator who gets the bid can take advantage 
of this turn key operation. 

Commissioner Goosby said that the Airport, in effect, is intruding on 
Duty Free 1 s lease. 

Mr. Turpen suggested putting the item over for two weeks since this 
is not a time critical issue. At that time staff will return with a 
new slant to thi s i ssue. 

Commissioner Goosby said that the Commission has not received any 
communications from Duty Free on this issue and perhaps they would 
send a letter to the Commission explaining their point of view. 

Ms. Gittens told the Commission that she received a letter last 
evening. 

Commissioner Goosby said that this would give us the opportunity to 
get a prime contractor under the MBE ordinance. He also said that 
it's possible that a competing bidder may have out-bid Duty Free had 
they known at that time that this space would be available. He 
applauded Duty Free's efforts but he had some concerns and would like 
the whole issue spelled out. 

Commissioner Murphy asked how the newsstand at the Gate 80 concourse 

is going to be integrated into the newsstand out there, and, whether 

there will be any changes made in the existing newsstand in light of 
the new one being opened. 

Minutes, Apr i 1 18, 1989, Page 8 



Items 3 and 5 were called together and adopted unanimously. 

3. Bid Call - Cont r act No. 2195: 
North Field Public Access Road 

No. 89-0073 Resolution approving the scope, 

budget, and schedule for Contract No. 
2195, authorizing the Director of 
Airports to call for bids when ready 
and authorizing the Director to award 
Contract No. 2195. 



Bid Call - Contract No. 2196: 
Airport Perimeter Security Fence 

No. 89-0075 Resolution approving the scope, budget 

and schedule for Contract No. 2196, 
authorizing the Director to call for 
bids and authorizing the Director to 
award Contract No. 2196. 

Mr. Turpen explained that items 3 and 5 were not only requesting bid 
calls but also authorized the Director to award the contracts. He 
explained that these items will address the problem of security on 
the North Field. The problem being, how to get to the North Field 
without going through a series of secured areas and the air 
operations area. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations and 
Maintenance, told the Commission that the FAA notified Duke Briscoe, 
Deputy Director of Operations, that the Airport had a security 
problem on the North Field. He said that a task force was put 
together to study and define the best way to secure this area and 
provide maximum efficiency of moving vehicles. A route was 
destablished that follows behind Flying Tigers and the seaplane 
harbor and then back around the North Field area. However, as this 
route intrudes on Coast Guard property the Airport must secure an 
easement from them. That process will take approximately two to 
three years, based on past experience. He said that the FAA is not 
willing to wait that length of time and is pressing the Airport to 
come up with an interim solution. Staff has come up with two 
solutions. One is to follow around the edge of the MOC, requiring 
the Airport to secure a portion of the MOC property, and then come 
back around to the North Field area. There will be a second guard 
shelter at the intersection of the proposed route and the permanent 
route. 

Mr. Bouey said that this contract will be divided into four parts, 
two of which are currently before the Commission. The contracts 
currently before the Commission are for pavement, additional fencing 
and replacement fencing. At the next Commission meeting he will 
present contracts for lighting and gates. Mr. Bouey explained that 
gates must be specially fabricated to allow aircraft to pass 
through. He said that nowhere in the country are such gates made. 
Staff is still waiting for information on this phase. 



Award of Contract No. 988R 



Engineering Building Renovation 

No. 89-0C74 Resolution awarding Contract No. 988R. 

Minutes , Apri 1 18, 1989, Page 9 



Engineering Building Renovation, to 
N.V. Heathorn, Inc. 

Commissioner Goosby noted that even with the MBE/WBE/LBE advantage 
these bids often appear in the same sequence and does not make much 
of a difference in who receives the lowest bid. He hoped that the 
City Attorney keeps that in mind when the issue goes to court. 



Shuttle Bus Service Agreement No. 68252, Modification No. 6 

No. 89-0076 The Airports Commission is being 

presented with a Resolution setting 
rates and making reimbursements for 
our Shuttle Bus service contract 
operated by SFO Shuttle Bus Company. 
The Resolution establishes the 1989 
hourly rates of $30.56 per basic hour 
and $21.21 per incremental hour, the 
payment of $17,968.00 for unantici- 
pated 1988 insurance premiums, the 
payment of $169,347 over four 
quarterly payments for 1989 pass- 
through insurance payments, and 
reimbursing SFO Shuttle the difference 
between 1989 and 1988 rates for 
services rendered between January 1 
and April 30, 1989. 

Mr. Turpen explained that this is a pass through based on a 
contractual arrangement to provide shuttle bus services to the 
Airport. The attachment to this item reflects the pass through we 
would expect based on the number of hours which staff has projected 
for such an operation. He explained that we reimburse the operator 
for agreed upon expenses such as insurance, fuel, and labor rates 
based on hourly rates and seasonal demand. 

Commissioner Bernstein asked what Los Angeles International Airport 
charges for its shuttle bus. 

Ms. Gittens responded that L.A. does not charge a fee. 

Commissioner Murphy commented that the problem in charging a fee is 
that the large doors, where passengers with baggage would enter, are 
in the middle of the bus, not at the front. He said that the problem 
with some shuttle buses, as is the case at JFK, is that passengers 
enter at the front door and boarding takes forever. 



Bay Area SuperShuttle Rental Credit for Information Cabinets 

89-0077 Resolution approving rental credit to 

Bay Area SuperShuttle for payment of 
$20,848.23 to Rothcoast Company for 44 
aluminum cabinets to be installed 
throughout the terminals displaying 
information on Upper Level Ground 
Transportation Services which include 
parking lot courtesy shuttles, rental 
car courtesy shuttles and door-to-door 
van services. 



Minutes, April 18, 1989, Page 10 



Mr. Turpen told the Commission that this is for the upper level, 
center island transportation services. This is the result of a 
fairly long negotiation with our on-demand operators regarding how we 
are going to improve the situation. He said that a new program has 
been implemented whereby the bus stops have been split on the upper 
level and dispatchers are now allowed on the upper level. The 
program has been effective to the point where the size of the holding 
lot needs to be increased and moved from the upper level roadway to 
the parking lot. 

Mr. Turpen explained that SuperShuttle purchased 44 display cabinets 
to expedite the process. The Airport is now responsible for 
reimbursing SuperShuttle for this expenditure. 

Commissioner Goosby asked which companies would be included in this 
display system. 

Mr. Sheldon Fein, Landside Operations, responded that this will not 
only include on-call operators, but all transportation operators 
located on the upper level roadway. 



8. Exercise Option to Extend Morla Design Contract for 1989 Annual Report 
No. 89-0078 

Mr. Turpen said that the annual report was well received. 

* * * 

The following items were adopted unanimously. 

9. Approve Naming of Stephen T. Bow to SFAIC Board 

No. 89-0079 Request for Board of Supervisors' and 

Mayor's approval of Stephen T. Bow's 
appointment to the Board of Directors 
of the San Francisco Airport 
Improvement Corporation. 

Commissioner Goosby asked if the Board of Supervisors or the Mayor 
has any appointments to this Board. 

Mr. Turpen responded that all members are named by the Commission. 

Commissioner Goosby asked if most of the members are airline people. 

Mr. Don Garibaldi, Airports General Counsel, responded that the Board 
members are not airline people. 



10. Resolution Ratifying Personnel Actions 

No. 89-0080 Resolution, in accordance with 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



Minutes, April 18, 1989, Page 11 



G. NEH BUSINESS: 

Mr. Turpen introduced a resolution to the Commission which approves 
extending an invitation to AOCI to hold its annual Pacific Basin 
Conference in San Francisco in 1990. 

Commissioners Duval 1 and Murphy agreed that such a conference would 
benefit the City and would be in keeping with the Mayor's wish to open up 
trade between San Francisco and other Pacific Basin ports. 

The resolution was adopted unanimously. 

No. 89-0083 



H. CORRESPONDENCE: 

There was no discussion by the Commission. 

* * * 

J. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:40 AM to go into closed session. 



Jean Caramatti 

loirmi ssion Secretary 



Minutes, April 18, 1989, Page 12 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DERT. 

i : 5 m$ 

SAN FRAiV^iowO 
PUBLIC IJHKARY 



MINUTES 



MAY 16, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

May 16, 1989 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER 


B. 




ROLL CALL: 



RESOLUTION 
NUMBER 



PAGE 



D. 
E. 



1. 



ADOPTION OF MINUTES: 

Regular meeting of 
May 16, 1989 



ANNOUNCEMENT BY SECRETARY: 



DIRECTOR'S REPORTS: 

Status Report - Valet Parking 
Rate Increase 

20th Annual AOCI Pacific Basin 
Conference to be Held in San 
Francisco - May 6-10, 1990 



89-0084 



3 
3 

3-4 



F. 
G. 



2. 



ITEMS INITIATED BY COMMISSIONERS: 

PENDING LEGISLATION: 
State Legislation 



89-0085 



4-5 



H. 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Award of Lease: Duty Free/ 

In-Bond 89-0086 

Authorization to Accept Bids: 

North Terminal, Gate 64 

Newsstand Lease 89-0087 

Authorization to Accept Bids: 

Pacific Bazaar Lease 89-0088 

Authorization to Permit California 

Products Shop in North Terminal 

HUB to Lakeshore Liquors 89-0089 

Award of Contract No. 1553R: 

Taxiway 'L' Extension and Northwest 

of Plot 40 Clean Up 89-0090 



5-6 

6 
6 

6-7 

7-9 



8. Award of Professional Services 
Contract: Evaluation and Improve- 
ments of Security Systems 89-0091 9 

9. Bid Call - Contract No. 2199: 
Taxiway 'C Automated Security 

Gates 89-0092 9 

10. Bid Call - Contract 2197: 
Electrical Improvement, North 

Field 89-0093 10 

11. Airport Improvement Program 

(AIP 10) 89-0094 10 



I. CONSENT CALENDAR OR ROUTINE 

ADMINISTRATIVE MATTERS: 



12. 


Retirement Resolution: 










Vi to Figl iol i 




89-0095 


10 


13. 


Retirement Resolution: 










Art Howard 




89-0096 


10 


14. 


Retirement Resolution: 










klyner Spencer, Jr. 




89-0097 


11 


15. 


$85,000 Contract with 


the 







Corporation of Fine Arts Museums, 

San Francisco 89-0098 11 

16. Approval of Exhibitions Program 89-0099 11-12 

17. Rejection of All Bids and 
Authorization to Re-Bid Contract 
1907B: Waterproofing North Terminal 

Roof 89-0100 12 

18. Award of Contract No. 1947: North 
Detention Pond - Installation of 

20-Inch Water Main 89-0101 12 

19. Travel/Training 89-0102 12 
NEW BUSINESS: 12 
CORRESPONDENCE: 12 



ADJOURNMENT TO GO INTO CLOSED 

SESSION: 13 



Minutes, May 16, 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

May 16, 1989 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:03 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: 

Absent: 



Morris Bernstein, President 
Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 

Patrick A. Murphy 



ADOPTION OF MINUTES: 

The minutes of the following meetings were adopted by order of the 
Commission President. 



No. 89-0084 



Regular meetings of April 4 and Apri 
18, 1989. 



D. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary announced 
unanimous adoption of resolution nos. 
89-0081, modification no. 3 to 
agreement with the law firm of Hanson, 
Bridgett, Marcus, Vlahos and Rudy, 
and, 89-0082, modification no. 1 to 
agreement with the law firm of Arnelle 
and Hastie at the closed session of 
April 18, 1989. 



E. DIRECTOR'S REPORTS: 

1 . Status Report - Valet Parking Rate Increase 



Report on six months' experience with 
new Valet Parking Rate. 



Minutes, May 16, 1989, Page 3 



Mr. Lou Turpen, Airport Director, told the Commission that while 
Valet Parking has realized an increase in revenues there has been a 
decrease in useage. Staff is prepared to take another look at this 
service and examine some options to make it more attractive. He said 
that staff will return within 90 days with suggestions on a possible 
range of services to be provided by Valet Parking to try and increase 
patronage. 

Commissioner Duvall noted that the Airport has contributed $66,558 
this year and asked if it was an increase over last year. She asked 
if net contributions have increased as well. 

Ms. Angela Gittens, Deputy Director, Business and Finance, responded 
that the net contribution has also increased since the Airport has 
not increased the operating cost. 

Commissioner Goosby said that the Commission has historically taken 
the position that while this service is valued by executives and 
others it will not be subsidized by the Airport. 



Mr. Turpen told the Commission that Pacific Basin airport directors 
voted at their last meeting to hold the next annual AOCI conference 
in San Francisco from May 6-10, 1990. He said that within the next 
four to six weeks he will present a detailed outline of the suggested 
program and actions that will be required on the Airport's part to 
host this 20th Annual Conference of the Pacific Basin Airport 
Operators. 



F. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



PENDING LEGISLATION: 

AB 2491 and SB 886 were adopted unanimously. AB 1656 was removed from the 
calendar. 

2. State Legislation 

No. 89-0085-A Resolutions opposing enactment of 

No. 89-0085-B AB 2491, AB 1656 and SB 886. 

Mr. Turpen told the Commission that the first bill deals with fees to 
be charged to off-Airport operators. He said that this is clearly an 
attempt by some Airport operators to obtain certain rights from the 
legislature that they have been unable to obtain from the courts. He 
recommended that the Commission support the resolution opposing this 
bill . 

Mr. Turpen said that SB 886 would establish procedures for an 
administrative protest by bidders with respect to decisions 
concerning disqualifications of bidders and subcontractors. This 
simply establishes another layer in a process which is already 



Minutes, May 16, 1989, Page 4 



complete in terms of protecting the rights of perspective bidders. 
He recommended opposing this bill by approving the resolution before 
the Commission. 

Mr. Turpen added that as the off-Airport bill is before Committee 
next Monday he wanted the Commission's opposition relayed to the 
Committee and on record. He said that AB 2491 would clearly 
foreclose some of the Airport's options. 

Commissioner Goosby said that the Commission has an appeal process 
already in place and these very operators have availed themselves of 
that process on more than one occasion. 

Commissioner Duvall said that the key difference in this piece of 
legislation is that it would prohibit letting the contract until the 
protest has been resolved. She felt that that was a very dangerous 
requirement to impose into the local process. She said that it was 
important for local authorities to maintain the ability to move 
projects forward as they see fit, paying due respect to the protest 
process. She felt that the Airport fulfills that requirement and was 
in favor of supporting the resolutions before the Commission. 

Commissioner Goosby said that the Commission is sensitive to the need 
of an appeal process and the role and responsibilities of 
Commissioners to act as an appeal body. He said that the Commission 
has always acted accordingly and given clear-cut responses and 
deci sions. 



H. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were adopted unanimously. 

3. Award of Lease: 

Duty Free/In-Bond Lease 

No. 89-0086 Resolution awarding the Duty 

Free/In-Bond Lease to Allders 
International , Ltd. 

Mr. Turpen recommended award of the lease to Allders, the high 
bidder, and said that he looked forward to working with them during 
the term of their lease. He said that he was certain that Allders 
would provide the high quality of service our passengers have grown 
to expect. 

Commissioner Stephens noted that Allders $20-mi 1 1 ion minimum bid is 
up from Duty Free's $3-million minimum. 

Mr. Turpen said that since Duty Free has advanced from paying the 
minumum to paying a percentage, the Airport currently receives about 
$6-mi 1 1 ion . 

Commissioner Stephens asked if this bid has a percentage clause as 
wel 1 . 

Ms. Gittens responded that it does. The percentage is 157. up to 
$40-million in gross revenue, and 207. after that. 

Commissioner Stephens asked if the bid simply went from $3-million to 
$20-mi 1 1 i on without anything else happening. 

Minutes, May 16, 1989, Page 5 



Ms. Gittens responded that that is correct. 

Mr. Turpen said that he is very pleased with the bid and looks 
forward to working with Allders. 



4. Authorization to Accept Bids: 

North Terminal, Gate 64 Newsstand Lease 

No. 89-0087 

Mr. Turpen said that this matter was put over from the previous 
meeting. The item pertains to space which American Airlines is 
relinquishing to the Airport. It is staff's intention to place a 
newsstand in that area in response to public comments. Staff met 
with Duty Free Shoppers at the Commission's request and Duty Free 
indicated at that meeting that none of the alternatives were viable 
at this time. He said that any problems that were indicated 
previously, if not resolved, are understood and it is recognized that 
there are no alternatives to this approach. Staff recommends moving 
ahead with this proposal as originally presented to the Commission. 



Authorization to Accept Bids: 
Pacific Bazaar Lease 

No. 89-0088 

Mr. Turpen told the Commission that this Boarding Area 'F' space is 
currently occupied by United Airlines. 

Commissioner Goosby asked if this will be a small business set aside 

Mr. Turpen responded that it will not. 



6. Authorization to Permit California Products Shop in the North 
Terminal Nub to Lakeshore Liquors 

No. 89-0089 Resolution authorizing Lakeshore 

Liquors to operate the California 
Products Shop in the North Terminal 
Hub on a month-to-month basis. 

Mr. Turpen said that this resolution ratifies a staff decision to 
issue a month-to-month permit to Lakeshore Liquors to operate through 
the period of September 9, 1989. The principal concession lease will 
take over at that time. 

Ms. Gittens explained that Lakeshore Liquors won the California Shop 
bid for the space near Boarding Area 'E'. This particular facility 
for which staff is requesting a permit is no longer included in that 
lease. 

Commissioner Goosby asked who has been running this shop until now. 

Ms. Gittens responded that the name of the company was California 
Shop. Their lease expired and some of the individuals of that 
company formed Lakeshore Liquors. California Shop has been desolved. 

Commissioner Goosby said that this new company will run the operation 
on a month-to-month basis until it becomes a new concession. 

Minutes, May 16, 1989, Page 6 



Commissioner Duvall asked what the economic impact will be and will 
this operator maintain the same level of revenue. 

Ms. Gittens responded that it will be the same store with the same 
offerings and pretty much the same management. 



Award of Contract No. 1553R: 

Taxiway 'L' Extension and Northwest of Plot 40 Clean up 

No. 89-0090 Resolution awarding Contract No. 1553R 

to Ghilotti Bros., Inc. in the amount 
of $2,656,923.00. 

Mr. C.J.S. Ogra, Ogra Security Services, submitted a letter of 
protest to the Commission (see attached). Mr. Ogra claimed that 
Ghilotti Bros, excluded his company as a subcontractor from this 
contract, they have violated State law, Section 6.49 of the 
Administrative Code, and they have not met Human Rights Commission 
requirements. He felt that this contract should be awarded to the 
next lowest bidder. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations and 
Maintenance, said that last evening HRC granted conditional approval 
to Ghilotti Bros. He explained that approval is not conditioned on 
whether or not Ghilotti gets the contract. HRC says that Ghilotti 
can get the contract but there are certain requirements they must 
fulfill during the life of the contract or be subject to liquidated 
damages. For all intents and purposes, HRC has given its approval to 
Ghilotti. 

Mr. Bouey explained that any time that an amount greater than one 
half of one percent of the contract is to be sublet, that 
subcontractor must be listed. However, this refers to trades such as 
plumbing subcontractors. Upon reviewing the situation, Don 
Garibaldi, Airports General Counsel concurs with his interpretation. 
Not only is Mr. Ogra not listed, or a company such as his, but also 
trucking suppliers, plumbing suppliers, or anyone who is not a trade 
subcontractor need not be listed. He said that City law is written 
to comply with State law. In this case, there is no defect in the 
bid and the award should be made to Ghilotti Bros. 

Commissioner Duvall asked Mr. Bouey to explain HRC's conditions. 

Mr. Bouey responded that Ghilotti Bros, employed what they thought 
was a woman-owned business. HRC determined that while they do not 
truly believe that it is a woman-owned business they do believe that 
Ghilotti made a good faith effort, and that is all that the ordinance 
requires. HRC has asked Ghilotti to subcontract an equal amount to 
another MBE or WBE. Ghilotti Bros, has agreed to do that. They will 
be subject to liquidated damages at the conclusion of the project if 
they fai 1 to comply. 

Commissioner Duvall asked if that is HRC's only condition. 

Mr. Bouey responded that it is. 

Commissioner Duvall asked Mr. Bouey if he would explain Mr. Ogra's 
concerns. 

Mr. Bouey responded that Mr. Ogra wants the Commission to deny 
Ghilotti the contract. He explained that Mr. Ogra's issue is that 
there are two bid items, one for flagman and one for security. The 



Minutes, May 16, 1989, Page 7 



total of those two bid amounts equals $42,000.00. One half of one 
percent of this contract would be $39,000.00. As such, Mr. Ogra's 
contention is that a security guard contractor should have been 
listed as a subcontractor. However, within the meaning of the law 
the only subcontractors that have to be listed are trades, such as 
plumbing and paving subcontractors. 

Commissioner Stephens said that that is opposed to service 
subcontractors, like security guards. He asked if they were 
specifically excluded from being listed. 

Mr. Bouey responded that they are. He said that in this particular 
contract the trucking subcontractor, which amounts to $260,000.00, is 
not listed because they are not subcontractors within the meaning of 
the law. 

Commissioner Stephens asked if Mr. Ogra's security firm is 
competitive. 

Mr. Bouey responded that he knew nothing about Mr. Ogra's firm but 
assumed that he was licensed. 

Commissioner Goosby asked why Mr. Ogra was objecting. 

Mr. Bouey responded that the law reads "subcontractor" and Mr. Ogra 
believes that he is a subcontractor to Ghilotti Bros. In a way that 
is true, but not within the meaning of the law. 

Commissioner Duvall asked if Mr. Ogra is performing this service for 
Ghilotti Bros. 

Mr. Bouey said that he did not know who Ghilotti Bros, will use. 
They might perform this service themselves. He said that the specs 
specifically state that the Airport may require the contractor to use 
a security guard firm, but we don't necessarily require it and most 
often do not. 

Commissioner Stephens said that he did not understand why Mr. Ogra's 
contract would be before this Commission. This is between Mr. Ogra 
and Ghilotti Bros. Either Ghilotti Bros, fulfills their HRC 
requirements, or they don't. If they don't, they are subject to 
liquidated damages. Commissioner Stephens said that this is not an 
appropriate issue to be before the Airports Commission. 

Mr. Bouey commented that it would be appropriate if the Commission 
believed Mr. Ogra's contention that Ghilotti Bros, did not submit a 
valid bid. Both he and the City Attorney believe that Ghilotti 's bid 
is val id. 

Mr. Ogra argued that his company was listed as a subcontractor on 
Contract 1560, Airport Dike. He said that he was called by Ghilotti 
Bros, and asked to submit a bid for this contract, which he did. He 
said that he gave Ghilotti all the documentation that they needed, 
including certifications for SBE, DBE, MBE and LBE. He sent this 
information on March 23. At 10:00 AM on March 28 he received a call 
from Mr. Frank of Ghilotti Bros, and was told that his company was 
listed as a subcontractor. When he telephoned Ghilotti Bros, at 3:00 
PM that same afternoon he was told that he was not listed as a 
subcontractor. He accused Ghilotti Bros, of cheating and using his 
company to get a quotation. Mr. Ogra said that Ghilotti is not 
State-licensed to do this type of work, nor have they listed any 
other company to provide this service. 

Commissioner Duvall explained to Mr. Ogra that the City Attorney 
Minutes, May 16, 1989, Page 8 



opined that this contract has been let within compliance of all 
applicable laws. She said that the arguments he is presenting are 
not appropriate to this Commission. With regard to Mr. Ogra's 
treatment by Ghilotti, she recommended that he meet with Mr. Bouey 
and that perhaps Mr. Bouey can facilitate a conversation between Mr. 
Ogra and Ghilotti Bros. She told Mr. Ogra that unfortunately he has 
exhausted the administrative process with respect to his protest. 

Mr. Garibaldi said that he met with Mr. Ogra and tried to explain the 
situation to him, but obviously was unsuccessful. 

Commissioner Goosby said that Mr. Ogra's claims of discrimination and 
mistreatment are issues for the Human Rights Commission to decide. 

Mr. Turpen said that the Commission has evaluated Mr. Ogra's comments 
within its authority. The Commission has received input from the 
City Attorney and they are obligated to stay within that authority. 
Some of the questions Mr. Ogra has raised are outside this 
Commission's purview. The process that has been followed has been 
legitimate both from the standpoint of the Human Rights Commission 
and the City Attorney. He suggested that Mr. Ogra sit down with Mr. 
Bouey so that he might direct him to someone who might be able to 
help him further. This Commission is not prepared to delve further 
into this issue by participating in discussions outside of its 
jurisdiction. 

An unidentified Ghilotti Bros, employee requested permission to 
address the Commission and correct some misstatements made by Mr. 
Ogra about Ghi lotti . 

Mr. Turpen said that that is not an issue before the Commission. The 
Commission fully understands the protest and has suggested a 
conversation with Mr. Bouey. The nature of Mr. Ogra's protest will 
not cause the Commission to change its view in terms of the low 
bidder. 

Mr. Bouey said that he would be happy to set up a meeting. 



Award of Professional Services Contract 



Evaluation and Improvements of Security Systems 
No. 89-0091 

Bid Call - Contract No. 2199: 



Taxi way 'C Automated Security Gates 

No. 89-0092 Resolution approving the scope, budget 

and schedule, authorizing the Director 
to call for bids and award Contract 
No. 2199 to the lowest, qualified and 
responsive bidder. 

Mr. Turpen said that this contract involved security gates for the 
north side of the Airport, adjacent to San Francisco Bay. This will 
improve access to that area and at the same time maintain the current 
level of security. 



Minutes, May 16, 1989, Page 9 



Bid Call - Contract No. 2197: 
Electrical Improvement, North Field 

No. 89-0093 Resolution approving the scope, budget 

and schedule, authorizing the Director 
to call for bids and award Contract 
No. 2197 to the lowest, qualified and 
responsive bidder. 



1 1 . Airport Improvement Program (AIP 10) 

No. 89-0094 Resolution approving the Project 

Application for AIP fund of 
$12. 2-mi 1 1 ion and requesting the Board 
of Supervisors to authorize filing of 
Project Application and acceptance of 
the resulting grant offer. 

Mr. Turpen explained that this is for approval of the Airport 
Improvement Program funds which are received from the Federal 
Government. Each year SF0 generates about $1 50-mi 1 1 i on for the 
Federal Trust Fund for airport improvements. Of that amount the 
Federal Government offers SFO $8-1 0-mi 1 1 ion for improvements at the 
Airport, although SFO no longer receives Federal grants due to our 
on-going dispute over noise and access. Despite this situation, he 
felt it prudent for the Airport to continue to request its allocation 
and allotment of funds in order to maintain a hold on those funds 
pending the outcome of the lawsuit. This is consistent with what the 
Airport has done traditionally. 

Commissioner Duvall asked if the $12. 2-mi 1 1 ion is an increase over 
last year. 

Mr. Turpen responded that the request is typically about $8 . 5-mi 1 1 i on 

Commissioner Goosby asked Mr. Turpen if there has been any progress 
in the lawsuit. 

Mr. Turpen responded that there is a motion for reconsideration 

before the new FAA Administrator. Depending on the Administrator's 

determination, the 9th Circuit Court has agreed to look at the issue 
at that point. 



I. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The following items were adopted unanimously. 

12 . Retirement Resolution: 
Vi to Figl iol i 

No. 89-0095 

1 3. Retirement Resolution: 
Art Howard 

No. 89-0096 

Minutes, May 16, 1989, Page 10 



14. Retirement Resolution: 
Hyner Spencer, Jr. 

No. 89-0097 



15. $85,000 Contract with the Corporation of Fine Arts Museums, 
San Francisco 

No. 89-0098 Contract for $85,000 with the 

Corporation of Fine Arts Museums, San 
Francisco (COFAM) for the purpose of 
providing and implementing Temporary 
Exhibitions at San Francisco 
International Airport for the fiscal 
year 1988/1989. 

Commissioner Goosby asked if the Corporation of Fine Arts Museums was 
a subsidiary of the Art Commission or a separate organization. He 
said that he was unaware that this contract existed. He thought that 
the Airport's Exhibition staff took care of everything. 

Commissioner Stephens responded that the Corporation of Fine Arts 
Museums is the owning company for the De Young, the Palace of the 
Legion of Honor and the Asian Art Museum. It is a charitable 
organization . 

Mr. Garibaldi responded that this came into existence about two years 
ago. Prior to that the Airport contracted with the Fine Arts Museum 
and the Museum Society to provide technical assistance to our staff. 

Mr. Turpen said that the Exhibition staff numbers six at most. Those 
six people put on a total of 40 temporary exhibitions a year. This 
is an extremely prudent and economical way for them to get the type 
of research and background they need on some of the exhibitions. He 
strongly recommended continuing this contract. 

Commissioner Goosby agreed that the Exhibition staff did an excellent 
job but he did not want additional employees hired. 

Mr. Turpen said that there have been six employees since the 
Commission established this program. They do an outstanding job. 

Commissioner Goosby agreed that the Exhibition program is a bright 
star in the Airport's crown and he was not denegrating it. 



16. Approval of Exhibitions Program 

No. 89-0099 Proposed Exhibition Schedule for the 

San Francisco International Airport 
Exhibitions Program July 1, 1989 to 
June 30, 1990. 

Commissioner Goosby said that he would like more minority artists 
exhibited at the Airport. 

Mr. Turpen said that the exhibits planned for the next fiscal year 
will offer a true international flavor and a broad spectrum of 
exhibits, both culturally and ethnically. 

Commissioner Duvall agreed with Commissioner Goosby in that while 
Minutes, May 16, 1989, Page 11 



there is a representative cross section of international, historical 
and folk art work there is no representation of local contemporary 
minority artists. She said that this has been discussed before and 
is something in which the Commission is interested. She asked that 
these comments be brought officially to Elsa Cameron's attention. 



17. Rejection of All Bids and Authorization to Re-Bid Contract 1907B: 
Waterproofing North Terminal Roof 

89-0100 Five numbers representing the 

quantities of sealant work and crack 
repairs were inadvertently omitted in 
the Airport's bid forms. Without 
these numbers, the bids received on 
April 25, 1989 cannot be used as basis 
for contract award. 



18. Award of Contract No. 1947: 



North Detention Pond - Installation of 20-inch Hater Main 

No. 89-0101 Resolution awarding Contract 1947 to 

Bay Pacific Pipelines, Inc. in the 
amount of $197,600.00. 



19. Travel /Training for Airport Representatives 

No. 89-0102 

Commissioner Bernstein asked what this trip was for. 

Mr. Turpen responded that it is for runway work. Staff will take a 
look at a 24-hour paving program that has been instituted in Miami to 
see if it is viable for San Francisco. 



3. NEW BUSINESS: 

There was no discussion by the Commission 



K. CORRESPONDENCE: 

There was no discussion by the Commission, 



Minutes, May 16, 1989, Page 12 



M. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:47 AM to go into closed session. 



&Uv 




Jeari Caramatti 



/Commission Secretary 



Minutes, May 16, 1989, Page 13 



PRO°0SAL and CONTRACT 

Date MARCH 23 , 19 89 



TO THE ESTIMATOR 



GHILOTTI BROS.. INC. 525 JACOBY ST. SAN RAF AEL. CA 94901 
Dear Sir: 

I propose to furnish all materials and perform all labor necessary to complete the following 

1. CONTRACT NO. 1553R (SF INTERNATIONAL AIRPORT TAXIWAY ' L ' ) 

2. WILL PROVIDE SECURITY GUARD SERVICES FROM THE TIME THE 
WORK IS COMMENCED UNTIL FINAL COMPLETION AND ACCEPTANCE. 



All of the above work to be completed in a substantial and workmanlike manner according to standard practices for the 

6umof $ 21.00/H0UR (ONE SECURITY OFFICER UNARMED) Dollars ($ ) 

Progress payments to be made MUN IHLl 



as the work progresses 



to the value of L2^ P" cent ( % ' of a11 work com P leted Tne entire 

amount of contract to be paid within FIFTEEN da y s after completion 

Any alteration or deviation from the above specifications involving extra cost of material or labor will only be executed 
upon written orders for same, and will become an extra charge over the sum mentioned in this contract. All agreements must 
be made in writing 

Name and Registration Number of any salesperson who Respectfully submitted, 

solicited or negotiated this contract: rt ~ D . __„., T v „ 

By OGRA SECURITY SERVICES 



Name CHARANJIT S. OGRA No. PQ OOPS 1 Q 154 TRUMBULL ST. SF. CA 94112 

. ... . t .. j Address 

Contractors are required by law to be licensed 415-586-2256 

and regulated by the Contractor's State License Telephone 

Board. Any questions concerning a contractor may Contractor's State License No PA 009519 

be referred to the registrar of the board whose 

address Is: You, the buyer, may cancel this transaction at 

Contractor's State License Board, an V lime P rior to midnight of the third business day 

3132 Bradshaw Rd. a ^ ter tne date of this transaction 

Sacramento, California 95826 

ACCEPTANCE 

You are hereby authorized to furnish all materials and labor required to complete the work mentioned in the 

above proposal, for which agree to pay the amount mentioned in said proposal, 

and according to the terms thereof 

ACCEPTED Date 19 



NOTICE TO OWNER 

Under the Mechanics' Lien Law, any contractor, ment or a modification thereof, in the office of the county 

subcontractor, laborer, materialman or other person who recorder of the county where the property is situated and 

helps to improve your property and is not paid for his labor, requiring that a contractor's payment bond be recorded in 

services or material, has a right to enforce his claim such office Said bond shall be in an amount not less than 

against your property. fifty percent (50%) of the contract price and shall, in 

addition to any conditions for the performance of the 

Under the law, you may protect yourself against such contract, be conditioned for the payment in full of the 

claims by filing, before commencing such work of claims of all persons furnishing labor, services, equipment 

improvement, an original contract for the work of improve or materials for the work described in said contract 



AIGNERFORM NO S5-037CA1. f\£ }C-N W 4 £ P G€- 



STATE OF CALIFORNIA - STATE AND CONSUMER SERVICES AGENCY 
DEPARTMENT OF GENERAL SERVICES 
Office of Small and Minority Business 
1808 - 14th Street, Suite 100 
Sacramento, CA 95814 



August 9, 1988 

OGRA SECURITY SERVICES 

154 TRUMBULL STREET 

SAN FRANCISCO, CA 94112 

Dear Businessperson: 

Your request to become prequalified for the Small Business Preference under 
Section 1896 et., seq., of Title 2, of the Administrative Code has been 
approved effective (07-08-88 - 12-31-90). This approval as a small 
business and subsequent consideration for the 5% Small Business Preference 
will only be for Service Contracts. It is not relevant to Commodity or 
Construction Contracts. 

Your firm's status must be reestablished at the end of each fiscal year. 
Our office will notify you on or about (01-15-91). 

Contractor Identification Number (855101) has been assigned to you on a 
permanent basis. Use this number on all bids with the State of California. 

Your firm has also become eligible for the prompt payment program. 
Therefore, upon being awarded a State contract, you must make a written 
request, accompanied with a photocopy of your award letter for a small 
business stamp. 

Thank you for doing business with the State. 

Sincerely, 



[Ad/^MlAju &biL4U&/l 



Charmaine Sonnier 

Services Verification Officer 

(916) 323-0843 

CS:pl 

CS002 



and County of San Francisco 



Human Rights Commission 

Office ^mcyity/Women Business Enterprise 

Office of Contract Compliance 

Office of Dispute Resolution 



Mr. ChaKanjit S. Ogra 
Ogra Security Services 
154 Trumbull Street 
San Francisco, CA 94112 



April 21, 19* 



Dear Mr. Ogra: 

Pursuant to the San Francisco Board of Supervisors' Minority/Women/ 
Local Business Enterprise Ordinance No. 139-84/Chapter 12D, the Human 
Rights Commission has determined that your business is certified as a bone 
fide Minority/Local Business Enterprise (M/LBE) for a period of two years. 
Your certification number is 41-010-00489 _ and will expire on 
January 31, 1990 

This certification number will allow your business to be eligible for 
ten percent (10*) preference in all bid proposals with the City and County 
of San Francisco. To verify your business as a bona fide Minority/ 
Local Business Enterprise, indicate your certification number and provide 
this letter upon request to the contract awarding authority. 

The Human Rights Commission reserves the right to withdraw this 
certification number at any time. The Commission also reserves the right 
to request and verify additional information and/or conduct on-site visits. 

If there is any change in your business status, (e.g., ownership, 
control of operations, address, or telephone change), notify our office 
immediately . For recertification, contact our office within sixty (60) 
days prior to the expiration of your certification number. Failure to do 
so may result in the deletion of your business status from the official 
certified list of K/LBEs. 

Upon any change of business status or recertification, notify our 
office at: 

Human Rights Commission 
Minority/Women Business Enterprise 
1095 Market St. ±501 
San Francisco, CA 94103 
Attn: Gary Wong 

The Human Rights Commission welcomes your participation as a Minority/ 
Local Business Enterprise. If our staff can provide further assistance, 
please contact us at (415) 558-4901. 



BSM:GW:bct 

[mwl ltr]6ARYW 



Sincere] . 

/ J Grants. Mickins 
/ / Di r/c tor 



FICATION NUMBER 
ATION DATE 



88H5641 



7/89 



STATE OF CALIFORNIA 



FIRM NAME, 
r. Charanjit Ogra 
gra Security Systems 
54 Trumball 
an Francisco, CA 94112 



■Pes' ■' PlMk tr- 



^tCRtl/f N10 CA 95EH 



July 8, 1988 



IT IS YOUR RESPONSIBILITY TO BE 
TIED ON A TIMELY BASIS 



THIS FIRM IS CERTIFIED AS A DISADVANTAGED BUSINESS ENTERPRISE 
CERTIFICATION MUST BE RENEWED ANNUALLY 







OGRA SECURITY SERVICES 

t TRUMBULL STREET SAN FRANCISCO CA 94 1 12 TELEPHONE (4 15) 586-2256 



Attention: The Director 

San Francisco International Airport Commission 
San Francisco 

Subject : Contract No. 1553R Taxiway 'L' 

San Francisco International Airport 

Dear Sir / Madam, 

I would like to draw your attention that above mentioned 
contract is being awarded to Ghillotti Bros. Construction 
Co., San Rafael on May 16,1989 in the Airport Commission 
meating in roo M no. 282 City Hall. 

Objections : 

1. Vide San Francisco Administration Code Section 6.49 
this coy failed to list some of the sub contractors 
as per item no. 28A / 28. 

The amount for item no. 28A = $ 14400.00 

Bid amount = $ 2656923.00 

$ 14400.00 = more than 1/2 % of bid amount. 
Ref. documents enclosed. 

2. Vide Sec. 6.51 San Francisco Administrative code. There 
was no public emergency or necessity after the bid 
opening. Permission ^yi^u-.not be granted (To add sub- 
contract or s) by the Mayo*, the Chief Administrator or 
controller, board or the commission, if granted will be 
suicidal issue for sub-contractors who are MBE/SBE/DBE/LBE . 

3. This coy has treated Ogra Security Services discriminate ly 
which is a violation of Federal rule Title VII because 

on 03/23/89 bid along with all the documents submitted to this 

company. On 03/28/89 at 1000 hours Mr. Frank considered 

to be one of their company officers confirmed on the phone 

that Ogra Security Services is listed in the sub contractor's 

list. At 1500 hours, the same day at the bid opening", it 

was found wrong. Documents enclosed. 

4. Ogra Security Services is MBE/SBE/LBE/DBE . Cetificates 
enclosed. 

It is requested , kind ly look into the matter and Ghillotti 
Bros. Consctuction Co.'s bid must be considered as non- 
responsive and should be rejected. Contract must be 
awarded to next successful bidder. 






OGRA SECURITY SERVICES 

TRUMBULL STREET SAN FRANCISCO CA 94 1 12 TELEPHONE (4 15) 586-2256 

Please feel free to call me if you have any questions. 



Thank you. 
Sincerely yours' 

Owner /Manager / 



ENGINEERING DIVISION 
San Francisco International Airport 



CONTRACT NO.: IS'S 3 ^. 



:itle : £~Kreys,cY/ o f- 7a >J <+> A / "£-" jj AJo^T//casS7~ ~P J~ D / 



ENGINEER'S ESTIMATE: $ 3 / 3 D Op C , ££_ 

DATE OPENED: 3/^-9,}^^ 

PROJECT MANAGER (ENGINEER) -fj ] £>LA i ZXfcJ 



^O CtCrfAs'tj 



ONTRACTOR 


BID 
PRICE 


Bid Preference Credit 
for 

MBE, WBE/LBE 


Bid After 
Preference 
Credit 


6 ADDRESS: 

Y CITIES PAVING 6 GRADING 
00 Huntington Ave. 
chmond.CA 94804 


z-lMPH 






GRADY PAVING INC. 
13 Wyandotte St. 
. View,CA 94043 


Aq-yisyt) 






ilotti Bros. 
5 Jacoby St . 
a Rafael, CA 94901 


Z (*f[,43j 


y 


S* ' 






i 


~ 








' / ■ 



























PROPOSAL "ENVELOPE A" 
CITY AND COUNTY OF SAN FRANCISCO 
_--> AIRPJDRTS COMMISSION 
Submitted by (hM)LOTT/ &£OS.jJL-teC. ^ 

Address £3S 3&CjclB1 ^TEe^r, ^m frf) FGet-. Cfi 9^0 ( 



Date /V>4/g'AV J^ . 19^7 



TO THE AIRPORTS COMMISSION OF 

THE CITY AND COUNTY OF SAN FRANCISCO 

Gentlemen: 

In compliance with the Invitation for Proposals and the proposed Contract Documents 
relating to construction : 

AIRPORT CONTRACT NO. 1553R 
TAXIWAY "L" EXTENSION AND NORTHEAST OF PLOT 40 CLEAN-UP 

AT 
SAN FRANCISCO INTERNATIONAL AIRPORT 

the undersigned bidder / hereby propose -> and agree J? . If this proposal is 
accepted, to execute the proposed contract furnishing all materials in accordance 
with said specifications, and to perform the work In strict accordance with the 
proposed Contract Documents, all under the supervision and to the satisfaction of 
the Airports Commission of the City and County of San Francisco, at the prices 
payable 1n lawful money of the United States, named In the schedule of bid prices 
attached to and forming part of this proposal. 

Herewith is enclosed a bidder's bond, certified check, or Irrevocable letter of 

credit 1n the amount of JO% &?"&[£> Dollars ($ ) 

payable to the City and County of San Francisco, pursuant to the requirements of 
the law relating to proposals submitted to the Airports Commission of the City and 
County of San Francisco, and subject to all conditions Imposed by such law. 

Bidder shall Indicate below all amendments received: 
No.'s V 




Ei feestrx^rr 



-Al- 
0537J(11) 01/30/89 



"ENVELOPE A" 
SCHEDULE OF BID PRICES 
(Quote In Hords and Numerals) 



28A Security Guards 
90 Mandavs At 



Item 

No 


Description, Estimated Quantity, 
. and Uni t Prl ce 


Extended Amount 
for Item 


25D 


Adjust Existing Catch Basin Frame and Cover 
1 Each At 


$ 




($ S&O^ ) Each 


% 5<?Q C - 


25E 


Adjust Existing Manhole Frame and Cover 

3 Each At / 


% 




($ {££>** ) E/ch 


i c/<b- ^ 


26 


Pavement Painting, Non-Reflective 
80 Squares At 


$ 




($ iZA C ^- > Sauare 


• s sz^o* 2 -' 


27 


Pavement fainting, Reflective 

60 Squares AJ, • . — _ 


$ 




($ <*30 )per sauare 


$ -f^^ao — 


28 


Flagmen for Traffic Control 

180*Mandays At / „ / , ^ A 


% 




(S //£>& ' )Der mandav 


^ ; ^o^ 



(S //^? °" e )per manday %J^ r 4=^^^ 

32 Hydraulic Seeding $ 

4 Acres At 



(S ZjDOa ^ )per acre S &s^& °_ 



"5r 



33 Clean Outs 
18 Units At 



( ZbO ^ )per unit S VSO& "" 



-A2 . 3- 
0537;<14> 03/17/89 



ENVELOPE A" 



SUBCONTRACTORS 



The bidder submits the following information as to subcontractors 
he intends to employ if awarded the contract (£ee specifications, 
Section 6 Page 20) 



Name & Address 
of 
Subcontractor 
& Location of 
'Mill or Sho 



Description of Work 

Reference 
to Contract Items 



Price/Prices 
Under 

Subcontract 



Subcont ractor ' s 
License No. 



State 
of 
CA 



C & C 
of 

SF 






■4-iS To<£iL, 



^3^ 






5ZZS& 



&&SKQ/ rib 






*/5.?^° 6 



fjPvOfAay^^c ° 









fy4.4Q^Z 



e~" 



CAUJrt 









g V.QCbQ** 






'eu<& 



4o 



4& 



<&//\6>SO°~ 



*ic?r u/ 



(Bidder to attach afldi tional sheets if necessary) 



-A5- 



;td. spec-faa-unit price 

)oc.03 00J-Disc.0 004~O~(19) 



07/24/87 



OGRA SECURITY SERVICES 

UMBULL STREET SAN FRANCISCO CA 94 1 12 TELEPHONE (4 15) 586-2256 



Attention: The Estimator 

Ghilotti Bros . , Inc . 
525 Jacoby Street 
San Rafael, CA 94901 

Subject : Sub bid for Contract No. 1553R (San Francisco 
International Airport Taxiway 'L') 

Sir /Madam , 

Enclosed please find the rate sheet and proposal for 
item no. 28A of the bid sheet. 

It is requested to include the name of Ogra Security 
Services in the sub contractors list. 

Feel free to call me if you have any questions. 

Thank you. 
Sincerely yours ' 



C.J.S.OgYa 3J>V \Qi*7 
Owner /Manager / / 



S" 



., SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

SAN FKAivOt^O 

• ■•l IHl If. 1 t M •->'•>>-» V 



MINUTES 



JUNE 6, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

June 6, 1989 



CALENDAR 
SECTION 

A. 
B. 
C. 



D. 
E. 



AGENDA 
ITEM 



RESOLUTION 
NUMBER 



F. 
G. 



89-0104 



TITLE 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 
May 16, 1989 



ANNOUNCEMENT BY SECRETARY: 



SPECIAL ITEM: 

Authorization to Distribute 
Working Paper 'C: Draft 
Airport Master Plan 



ITEMS INITIATED BY COMMISSIONERS: 



PENDING LEGISLATION: 

Resolution Opposing Charter 

Amendment to Consolidate Peace 

Officers into Sheriff's Office 89-0106 



PAGE 



89-0105 



H. 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Long Distance Service from 
PAcific Bell Public Telephones 

Termination of Limousing Service 
Lease 

Authorization to Conduct Pre-Bid 
Conference: Limousine Service 
Lease 

Bid Call: Hotel/Motel and Cable 

Car Advertising 89-0107 



Bid Call- Contract No. 2147: 
Police Locker Rooms in South 
Terminal 



89-0108 



8. Lease Modification No. 7 and 8 
- United Airlines Lease and 

Use Agreement No. 82-0126 89-0109 

9. Award of Contract No. 101 IB. 1: 
Taxiway 'C Realignment and 

U.S. Coast Guard Relocation 89-0110 

10. Award of Professional Services 
Contract: Sequoia Analyti cal 
Laboratory 89-0111 



I. CONSENT CALENDAR OF ROUTINE 

ADMINSTRATIVE MATTERS: 

11. International Terminal Cigarette 
Vending Lease - Month-to-Month 
Holdover 89-0112 

12. Rental Credit: Pan American 

World Airways 89-0113 

13. Proposed EAsement Sale to 
CalTrans Adjacent to North Access 
Road, San Bruno, San Bruno 
Chennel 4-5M-380 Parcel 

48848-1 and 2 89-0114 

14. Resolution Ratifying Personnel 

Actions 89-0115 



PUBLIC HEARING: 

15. Proposed Privilege Fees for Off- 
Airport Rental Car Companies 6 

16. Proposed Increase in Cargo Rental 

Rates 6 



K. NEW BUSINESS: 6 

L. CORRESPONDENCE: 6 



N. ADJOURNMENT TO GO INTO 

CLOSED SESSION 



Minutes, June 6, 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

June 6, 1989 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 



Morris Bernstein, President 
Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of May 16, 1989 were adopted by order 
of the Commission President. 

No. 89-0104 



D. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary announced 
unanimous adoption of resolution no. 
89-0103 regarding the settlement of a 
litigated claim, at the closed session 
of May 16, 1989. 



A Court Reporters transcript of this meeting is attached 



E. SPECIAL ITEM: 

Item No. 1 was adopted unanimously. 

1 . Authorization to Distribute Working Paper 'C 
Draft Airport Master Plan 

Minutes, June 6, 1989, Page 3 



No. 89-0105 Resolution authorizing Director to 

distribute Horking Paper 'C - Draft 
Airport Master Plan to Airport 
tenants, the public, governmental 
agencies, and other interested parties 
for review and comment. 



F. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



PENDING LEGISLATION: 

Item No. 2 was adopted unanimously. 

2. Resolution Opposing Charter Amendment to Consolidate Peace Officers 
into Sheriff s Office. 

No. 89-0106 



H. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 3 was tabled. 

3. Long Distance Service from Pacific Bell Public Telephones 

Resolution authorizing staff to 
suspend efforts to issue a Request for 
Proposals for Long Distance Service 
from the Pacific Bell Public 
Telephones. 



Items 4 and 5 were removed from calendar. See attached letters submitted 
by cab drivers to Commission. 

4. Termination of Limousine Service Lease 

Resolution terminating the Limousine 
Service Lease between Associated 
Limousine Operators of San Francisco, 
i Inc . and the Airport. 



5. Authorization to Conduct Pre-Bid Conference 



Limousine Service Lease 



Resolution authorizing staff to 
conduct pre-bid conference for a 
Limousine Service Lease and awarding 
an interim permit for limousine 
service. 
Minutes, June 6, 1989, Page 4 



Item No. 6 was adopted by a 4-1 vote, with Commissioner Bernstein casting 
the dissenting voted. 

6. Bid Call : 

Hotel/Motel and Cable Car Advertising 

No. 89-0107 

Item No. 7 was adopted unanimously as amended. 

7. Bid Call - Contract No. 2147: 

Police Locker Rooms in South Terminal 

No. 89-0108 Resolution approving the scope, budget 

and schedule, for Contract No. 2147 
and authorizing the Director to call 
for bids when ready. 



Items 8 through 10 were adopted unanimously. 

8. Lease Modification No. 7 - United Airlines Lease and Use Agreement 
No. 82-0126 

No. 89-0109 Modification adds 24,110 square feet 

of space with the specified immediate 
return of 2,154 square feet to the 
City for a total addition of 21,956 
square feet to United Airlines Lease 
and Use Agreement No. 82-0126. 



Award of Contract No. 101 IB. 1 



Taxi way 'C Realignment U.S. Coast Guard Relocation 

No. 89-0110 Resolution awarding Contract 1011B.1 

to Anderson Pacific Engineering 
Construction, Inc. in the amount of 
$2,261,700.00. 



10. Award of Professional Service Contract: 



Sequoia Analytical Laboratory 



No. 89-0111 Resolution approving the employment of 

Sequoia Analytical Laboratory to 
provide testing services. 



I. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

Items 11 through 14 were adopted unanimously. 

1 1 . International Terminal Cigarette Vending Lease - Month-to-Month 
Holdover 

No. 89-0112 

Minutes, June 6, 1989, Page 5 



12. Rental Credit: Pan American World Airways 

No. 89-0113 Rental credit for Airport requested 

removal of portion of Pan American 
Baggage System. 



13. Proposed Easement Sale to Caltrans Adjacent to North Access Road, 
San Bruno, San Bruno Channel 4-5M-38Q Parcel 48848-1 and 2 

No. 89-0114 Resolution approving the proposed 

Easement Sale to State of California 
(Caltrans), for Parcel 48848-1 
containing approximately 600 square 
feet and Parcel 48848-2 containing 
approximately 900 square feet for 
drainage purposes and incidents 
thereto for the sum of $2,500.00 
payable to grantor, City and County of 
San Francisco. 



14. Resolution Ratifying Personnel Actions 

No. 89-0115 Resolution in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



PUBLIC HEARING: 

The Public Hearing for Item No. 15 was convened at 10:00 AM and closed at 
10:25 AM, there being no further comments from the public. 

15. Proposed Privilege Fees for Off-Airport Rental Car 
Companies 



The Public Hearing for Item No. 16 was convened at 10:25 AM and closed at 
10:26 AM, there being no comments from the public. 

16. Proposed Increase In Cargo Rental Rates 



K. NEW BUSINESS: 

There was no discussion by the Commission. 

* * * 

L. CORRESPONDENCE: 

There was no discussion by the Commission. 

Minutes, June 6, 1989, Page 6 



* * * 



N. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:26 AM. 



/J dan Caramatti 
Commission Secretary 



Minutes, June 6, 1989, Page 7 



CITY AND COUNTY OF SAN FRANCISCO 
ART AGNOS, MAYOR 



SAN FRANCISCO INTERNATIONAL AIRPORT 



MEETING OF THE AIRPORTS COMMISSION 



OOO 



SAN FRANCISCO CITY HALL, ROOM 282 
SAN FRANCISCO, CALIFORNIA 



Tuesday, June 6, 1989, 9:00 a.m. 



oOo 

Zl ,0PV 

Taken Before CHARLOTTE CERVANTEZ, Notary Public 
County of Alameda, State of California 

C.S.R. LICENSE NO. 4486 

Bay area court reporters 

21378 Foothill Btvd 41 Sutler. Suite 1222 

Hayward. Ca 94541 (415)889-9400 San Francisco, Ca 94104 



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REPORTER'S TRANSCRIPT OF PROCEEDINGS 
Tuesday, June 6, 1989 



SAN FRANCISCO INTERNATIONAL AIRPORT COMMISSIONERS 

HONORABLE MORRIS BERNSTEIN, President 

HONORABLE DR. Z.L. GOOSBY, Vice-President 

HONORABLE DONALD R. STEPHENS, Commissioner 

HONORABLE SHARON B. DUVALL, Commissioner 

HONORABLE PATRICK A. MURPHY, Commissioner 

oOo 

LOUIS A. TURPEN, Director of Airports 

DENNIS BOUEY, Deputy Director of Airports 

DONALD GARIBALDI, Airport General Counsel 

ANGELA GITTENS, Human Rights Commissioner 

JEAN CARAMATTI, Airports Commission Secretary 

oOo 



Bay area court reporters 



21378 Foothill Blvd 
Hayward. Ca 94541 



(415)889-9400 



41 Sutler, Suite 1222 
San Francisco. Ca 94104 



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25 

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AUDIENCE SPEAKERS 



John Mahoney 



Andrew Fenyes 



Ed Burke 



Charles Gale 



Mike Sealey 



Andy De Paule 



Steve Vaughn 



Robert K. Madgett 



Oral Hurst 



Martin Kantoff 



PAGE 



27 



31 



32 



34 



58 



60 



61 



65 



74 



Bay area court reporters 



21378 Foothill Blvd 
Hayward. Ca 91541 



(415)889-9400 



41 Sutler. Suite 1222 
San Francisco. Ca 94104 



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PROC.EEDING_.S_ 

MR. BERNSTEIN: The meeting of the San Francisco 
Airports Commission will please come to order. Will you call 
the roll? 

MS. CARAMATTI : Commissioner Bernstein? 

MR. BERSTEIN: Here. 

MS. CARAMATTI: Commissioner Goosby? 

DR. GOOSBY: Here. 

MS. CARAMATTI: Commissioner Stephens? 

MR. STEPHENS: Here. 

MS. CARAMATTI: Commissioner Duvall? 

MS. DUVALL: Here. 

MS. CARAMATTI: Commission Murphy? 

MR. MURPHY: Here. 

MS. CARAMATTI: You have before you adoption of the 
minutes of the regular meeting of May 16, 1989. 

MR. BERNSTEIN: Any seconds? 

MR. STEPHENS: I'll move for approval. 

MR. BERNSTEIN: Any objections? Any corrections? 

MS. CARAMATTI: No. 

MR. BERNSTEIN: So ordered. 

MS. CARAMATTI: Next we have announcement by 
secretary: In accordance with procedures, we have the unanimous 
adoption of resolution No. 89-0103 regarding the settlement of a 
litigated claim at the closed session of May 16, 1989. 



Bay area Court reporters 



21378 Foothill Blvd 
Hayward. Ca 945-11 



(415)889-9400 



41 Sutler. Suite 1222 
San Francisco. Ca 94104 



Next you have a Special Item, Item 1, Authorization 
to Distribute Working Paper "C", Draft Airport Master Plan. 
MR. BERNSTEIN: Anything on that? 
MR. TDRPEN: Yes, sir. 
MR. BERNSTEIN: Mr. Turpen? 

MR. TURPEN: This, Working Paper "C", basically 
combines our efforts from our prior two working papers on the 
Master Plan, "A" and "B". It includes revisions from comments 
we received from the distribution of those earlier drafts of the 
Master Plan. 

As I had indicated to the Commission earlier, I'd be 
coming before you at this meeting requesting permission to 
release Working Paper "C", the latest draft of the Master Plan, 
to the general public, our tenants, governmental agencies, for 
their review and comment. 

The differences between Working Papers "B" and "C" 
are outlined for you in my memorandum of May 30th, and if the 
Commission allows release today, we would forward 
approximately 300 copies — 

MR. YUEN: It's about 400 copies. 
MR. TURPEN: — close to 400 copies of the 
Master Plan to various interested parties and individuals. We 
will then schedule two public hearings, one in San Mateo County 
and one in San Francisco, to solicit further comments and 
reaction to the Master Plan. 

At this time I'm asking for authorization to make 



Bay area court reporters 



21378 Foothill Blvd 
Hayward, Ca 94541 



(415)889-9400 



41 Sutter, Suite 1222 
San Francisco. Ca 94104 



public the Working Paper "C" so that we can start to work with 
the community to get their input, reaction and start to come to 
closure on the Master Plan. 

MR. BERNSTEIN: Ms. Duvall? 

MS. DUVALL: I second. 

DR. GOOSBY: Are those meetings, public mettings, 
usually held in the evening? 

MR. TURPEN: Yes, sir. 

DR. GOOSBY: Oh, they are. 

MR. TURPEN: Yes. 

MR. BERNSTEIN: Any questions? Pat? 

MR. MURPHY: No. 

MR. BERNSTEIN: So ordered. 

Why don't we call the roll on this one. 

MS. CARAMATTI : Commissioner Bernstein? 

MR. BERNSTEIN: Yes 

MS. CARAMATTI: Commissioner Goosby? 

DR. GOOSBY: Yes. 

MS. CARAMATTI: Commissioner Stephens? 

DR. GOOSBY: Yes. 

MS. CARAMATTI: Commissioner Duvall? 

MS. DUVALL: Yes. 

MS. CARAMATTI: Commissioner Murphy? 

MR. MURPHY: Yes. 

MS. CARAMATTI: Next is "Items Initiated by 
Commissioners. " 



Bay area court reporters 



21376 Foothill Blvd 
Hayward. Ca 94541 



(415)889-9400 



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San Francisco. Ca 94104 



MR. BERNSTEIN: Anything? 

MR. STEPHENS: No. 

MR. BERNSTEIN: That will be done, then. 

MS. CARAMATTI : Item 2, Resolution Opposing Charter 
Amendment to Consolidate Peace Officers into Sheriff's Office. 

MR. BERNSTEIN: So moved and seconded? 

MS. DUVALL: Yes. 

MS. CARAMATTI: So moved. 

MR. TDRPEN: The matter before the 
Airports Commission, there is pending in the Rules Committee of 
the Board of Supervisors a promised charter amendment which 
would place peace officers working at San Francisco 
International Airport, in other words, members of the airport 
police currently working for the Airports Commission, under the 
jurisdiction of the San Francisco Sheriff. 

There are several concerns with this proposal; they 
are legal, financial, operational, certain concerns with respect 
to potential future liability, and organizational concerns which 
I've outlined for the Commission in both my memorandum of 
May 31st and in a subsequent June 2nd memo. 

I would ask the Commission to take the position in 
opposition to this charter amendment so that when this matter 
comes before — if and when this matter comes before the Board, 
Staff will have the Commission's view on record and will be able 
to share that view with the appropriate committee of the Board. 
DR. GOOSBY: I so move. 



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MR. BERNSTEIN: Any question or anything? 
Don, is there anything to hear on this one? 
MR. STEPHENS: No, there is not. 
MR. BERNSTEIN: Anything for you? 

MS. DUVALL : No. I'm in agreement. I think we can 
take it to a vote. 

DR. GOOSBY: I second it. 

MR. BERNSTEIN: It's been moved and seconded. 

If you would call the roll. 

MS. CARAMATTI : Commissioner Bernstein? 

MR. BERNSTEIN: Now, a vote is being held; is that 



it? 



this one. 



MR. TURPEN: I'm sorry? I think we vote "Yes" on 



MS. DUVALL: We've got a resolution. 
MR. TURPEN: It's a resolution, which opposes if you 
vote in the affirmative on the resolution. 

MR. BERNSTEIN: ... on the resolution, yes. 

MR. TURPEN: It's not one of my trick resolutions. 

MS. CARAMATTI: Commissioner Bernstein? 

MR. BERNSTEIN: Yes. 

MS. CARAMATTI: Commissioner Goosby? 

DR. GOOSBY: Yes. 

MS. CARAMATTI: Commissioner Stephens? 

MR. STEVENS: Yes. 

MS. CARAMATTI: Commissioner Duvall? 



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MS. DUVALL: Yes. 

MS. CARAMATTI: Commissioner Murphy? 

MR. MURPHY: Yes. 

MR. BERNSTEIN: Next? 

MS. CARAMATTI: Item 3, Long Distance Service from 
Pacific Bell Public Telephones. 

MR. STEPHENS: One speaker on that. 

MR. BERNSTEIN: Motion and second? 

DR. GOOSBY: Has it been moved? 

MR. STEPHENS: Seconded. 

MR. BERNSTEIN: Would you like to speak on that 



first? 



this. 



MR. TURPEN: I'll wait, Commissioner. 

I believe we have someone who wishes to speak on 



MR. BERNSTEIN: We have Mr. John Mahoney from 
Cooper, White & Cooper. 

JOHN MAHONEY 

MR. MAHONEY: Yes, thank you, Mr. Bernstein. 

My firm represents M.C.I. Telecommunications 
Corporation. 

MR. BERNSTEIN: Would you speak into the microphone, 
so that the audience can hear. 

MR. MAHONEY: We didn't learn about this, that this 
item was on the calendar, until the weekend, and yesterday 



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Mr. Garibaldi was kind enough to provide us with a copy of the 
resolution. 

I would suggest at the outset that the matter be put 
over until the next meeting. This is a significant revenue item 
to the airport and to the people of the City and County, 
involving approximately $35,000 a month, is the estimate of our 
M.C.I, people, in additional revenue that the city, the airport, 
is losing as long as the current interim contract is extended. 

We'd like, if possible, the opportunity to put 
together, in brief written form, the information that we think 
you would need to decide this. So, I would ask that at the 
outset. 

I'm ready to talk about the merits, if you wish. 
But it does seem to be an important item that could be put on 
hold for a couple weeks. 

MR. BERNSTEIN: Hasn't there been a lawsuit filed? 
MR. TURPEN: Yes. I believe M.C.I, has filed a 
lawsuit against the Airports Commission over the matter, over 
this matter, basically long distance service. 

If I can refresh the Commission's memory on this 
matter, several weeks ago Staff came to the Commission and 
indicated that they would be either seeking proposals or bidding 
the long distance service at the airport. 

At that time the Staff asked the Commission to agree 
to continue with our current vendor, pending our ability to bid 
this, and that we would move forward as quickly as possible to 



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do so. The Commission agreed and indicated that Staff was to 
complete this process, and as I know the Commission is aware, 
the City has a fairly protracted process in these matters. And 
I think this process is complicated by the competitive nature of 
this portion of the industry. 

The Commission said that you must complete this 
activity within one year, and they said there would be no 
further extentions, and to place the appropriate priority on it 
among the other things that we're currently doing with respect 
to bidding and proposals. 

We are prepared to do that. We did get into some 
conversations with persons from M.C.I, and from their legal 
counsel concerning this matter. Clearly, you know, we said that 
we were moving in the direction that certainly they were 
interested in us moving, and invited them to participate with us 
to accelerate this process, you know, as much as possible. And 
in great measure, that's where we were. 

There has now been litigation filed. The 
litigation calls into question a number of things, also puts us 
in a position of calling into question our ability to meet the 
Commission's time frame. I realize and recall clearly the 
Commission's intent in establishing the parameters for this, at 
a year, and did not want to be obligated to come back to the 
Commission at some late date trying to explain why we wouldn't 
be able to meet that. 

MR. MURPHY: I have a question here of either the 



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witness or Staff. 

Why was the suit filed? 

MR. MAHONEY: The suit does not attack the long term 
process that's underway and that's the subject of discussion 
today. 

The suit was filed in large part because M.C.I, 
learned that contrary to previous representations, the R.F.P. 
process had been delayed, so that it was not going to take 
effect until April of next year; so that the interim contract 
for services between now and the implementation of the other 
one, instead of coming to an end at the end of this month — 
which is what the Airport Staff had consistently told M.C.I, 
people, even into this year — was now going to take a year and 
a half, rather than six months. 

And the position of M.C.I, is that an interim 
contract of that duration is subject to competitive bidding 
processes of the City Charter. 

DR. GOOSBY: But that's not the plan, to take that 
long for the city? 

MR. TURPEN: Well, if I remember correctly, and I'll 
have to defer to Ang, her memory being better than mine on this 
one, we came to the Commission a couple months ago and asked for 
permission to extend this so that we can work through it, work 
through the process. 

As you all know, we go to prebid; when we develop 
specifications, we go prebid conferences, we come back to the 



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Commission on three separate occasions, and it takes some time 
to complete the process. 

I think M.C.I.'s view is simply: They'd like a 
piece of the action now, they'd like a piece of the long 
distance action now; and there's no reason that the airport 
shouldn't divvy it up, because that's what they would like us tc 
do. 

Our view is that we have to maintain an environment 
where we're not simply reacting every time somebody wants to 
come along and do something. We thought that a year was 
certainly ample time in which to perform this activity. 

MR. STHEPHENS: Is the activity you're talking about 
just putting together the bid? I mean, we're talking about 
bidding telephones, and we need a whole year? 

DR. GOOSBY: Well, see, yeah, as a matter of fact, 
as part of that same question — and you can answer it at the 
same time — this document talks about a request for proposal, 
which is different from a bid. 

Now, are we talking about a bid, where we're going 
to put the thing out like we do all the other things? A request 
for proposal is not bid upon. A request for proposals is you 
get proposals from various companies, you then look them over, 
and then objectively and subjectively you select the one you 
want, and the Commission approves it. That's not a bid. 

MR. TURPEN: Right. 

DR. GOOSBY: Where the dollar figure is the deciding 



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factor. 

So if we're talking about a bid, I don't see why it 
takes us a year to prepare the bid documents to go out and let 
the companies who want to compete for this bid on it. 

MR. STEPHENS: Nor do I see why it takes a year for 
a request for proposal. 

MR. TURPEN: Well, I think the Staff's current 
thinking is, what, R.F.P.? Okay, basically it would be a 
competitive process, but it would result in an R.F.P. 

I think that was the Commission's view when we first 
talked about it, and we estimated eight or nine months. But at 
the time, we were 60 percent — 60 percent of the persons in our 
property management division were gone, we had essentially two 
people essentially on Staff to handle all of the bidding at the 
airport. 

As the Commission is well aware, we have a number of 
other things going on. We just had the duty free, the 
bookstore. These people handle all of these activities. It's 
simply a question of priority, and it's simply a question of 
marching to, if you will, the tune that's good for the airport. 
Not necessarily changing all of our properties because somebody 
wants us to accelerate. 

Quite frankly, there are hundreds of pe-ople out 
there in the environment who would like us to accelerate things 
every day. We do our best to do them as promptly as possible. 
MR. GARIBALDI: Well — go ahead. 



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MR. MURPHY: Make sure I just can sum this up: 
We've gone ahead and granted the — executed the agreement for c 
one-year extension with AT&T? 
MS. GITTENS: Yes. 

MR. MURPHY: That's been done, has it not? 
MR. TURPEN: Yes. 

MR. MURPHY: And you were going ahead with the 
R.F.P. procedure to work out proposals, and this matter being 
brought before the Commission says that we ought to stop seeking 
the proposals. 

MR. TURPEN: Stop the process. 

MR. MURPHY: Stop the process while the litigation 
goes forward. 

MR. TURPEN: I think that's right. And I also — 
MR. MURPHY: Why should we change anything because 
of the litigation? Have we been enjoined? 

MR. GARIBALDI: There is no injunction. 
The litigation, just so it's clear, is a writ of 
mandate challenging the decision of the Airports Commission to 
award this one-year career contract to AT&T. And — 
MR. MURPHY: But that was a played card. 
MR. GARIBALDI: That's correct. 
MR. MURPHY: We decided to do that, it's been 
executed. If it turns out we're wrong, some distant day a judge 
will tell us that. 

At present we're simply out looking for proposals, 



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and that will be from M.C.I, or anybody else. 
MR. TURPEN: That's right. 

MR. MURPHY: And while I never like to be sued, I 
think I learned a long time ago, you don't stop doing what 
you're doing just because somebody files a lawsuit. Lawsuit's 
are cheap. 

MR. TURPEN: I think the other issue here was the 
question of how this might impact the timing on our ability to 
meet the Commission's very clearly stated goal of completion 
within a year, and we brought this matter to the Commission. 
The Commission, clearly, understands our concerns. We are 
prepared to move ahead, as we were two months ago. 

MR. MURPHY: Well, my view on this is that all the 
suit is ever going to do is perhaps tell us we shouldn't have 
given AT&T a one-year extension. And it will either come out 
that way or it won't come out that way. 

But I don't understand why that should have any 
impact in going forward exactly as we had planned to, until some 
court or competent jurisdiction stops us from doing what we're 
doing. 

MR. TURPEN: Fine. 

MR. MURPHY: Again, I don't understand that M.C.I, 
is asking us to stop going forward on the request for proposal. 

MR. MAHONEY: To the contrary, Mr. Murphy — 

MR. MURPHY: I guess it would like us to go forward. 

MR. MAHONEY: Yes, certainly. 



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MR. MURPHY: Then you would appear in opposition to 
this item. 

MR. MAHONEY: Yes, that's correct. 

MR. MURPHY: Good. I'm opposed. 

MR. STEPHENS: All you really want is an opportunity 
to bid. Is that right? 

MR. MAHONEY: That's correct. 

MR. STEPHENS: And you haven't had that opportunity. 

MR. MAHONEY: That's right. 

MR. STEPHENS: Would the Staff agree that they 
haven't had the opportunity? 

MR. TURPEN: No. 

MS. DUVALL: Well, they do have an opportunity to 
participate. 

MR. MAHONEY: Well — Oh, excuse me. I'm sorry. 

DR. GOOSBY: We're talking about oranges and apples. 
Are we going to talk about bidding? Or are we talking about a 
request for proposal? 

MR. STEPHENS: I'm sorry, I'm sorry. We're talking 
about — 

MR. MURPHY: We're talking about R.F.P. 

I think the point, Don, is simply that I don't see 
any reason for the process not to go forward exactly as we had 
planned it, and apparently the witness' organization would 
desire that to happen. 

MR. TURPEN: And that's another issue. 



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MR. STEPHENS: And that gives an opportunity for 
everybody to submit an R.F.P. — 

MR. MURPHY: Yeah. 

MR. STEPHENS: — and we take the best one. 

MR. MAHONEY: That's correct. 

MR. STEPHENS: And that's what you want. 

MR. MAHONEY: Yes. 

MR. STEPHENS: And that's what we want. 

MR. MURPHY: The only issue is whether we did 
something improper in giving AT&T a one-year extension, and we 
either did or we didn't. 

MR. STEPHENS: Yeah, that's right. 

DR. GOOSBY: That's correct. 

MR. MURPHY: And knowing the judicial process, it 
may be a year before we get an answer. 

MR. MAHONEY: That's exactly right. 

DR. GOOSBY: We could have given AT&T a 
month-to-month. We didn't have to say a year. 

MR. MURPHY: But we did. 

DR. GOOSBY: I think this is the point they're 
making; they're saying why give them a flat year, when you can 
do this in two or three months? 

MR. MAHONEY: That may be the point of the lawsuit, 
Dr. Goosby, but I think Mr. Murphy correctly sums up what's 
going on here. 

We simply say: Let this process go forward. 



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And there's no reason to hold it off. LAX and 
San Diego and Salt Lake City and Indianapolis have already made 
their contracts, they've completed the process; and there's any 
number of other airports that have them underway with R.F.P.'s 
out, and there's no reason for the City to be lagging. 

MR. MURPHY: Is it your proposal, your position, 
that there is something wrong with taking the R.F.P. approach as 
opposed to bidding it? 

MR. MAHONEY: That is not my position. We have — 
Certainly not the position taken in the lawsuit, which does not 
challenge anything about the process for the long-term contract. 
MR. MURPHY: Okay. 

MR. TURPEN: Ms. Gittens? Oh, Donald. 
MR. GARIBALDI: If I can say, John, I'd have to 
dispute you on that. The whole basis of the litigation is that 
we should have bid the one-year contract. And if you're right, 
then we must bid the next contract as well. Isn't that what 
your lawsuit says? 

MR. MAHONEY: You correctly characterize what the 
lawsuit says. But the inference I don't necessarily agree with. 
And in the meanwhile, it seems to me the process in 
the early stages is for all practical purposes identical anyway. 
The City is obvious — the airports going to have to solicit 
input from suppliers and find out what's available and what the 
experience of other airports has been and so forth, and there's 
no reason for that to be delayed. 



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MR. STEPHENS: If we went forward with the request 
for proposal, would M.C.I, be content with that mechanism? And 
if their proposal wasn't good, would they then file a lawsuit 
that says you should have taken a bid? Or would they — 
DR. GOOSBY: Right. Right. 
MS. DUVALL: We can't be sure of that. 
MR. STEPHENS: Or if we take the position if they 
win they win, if they lose they lose. 

MR. MAHONEY: I'd have to talk with M.C.I, about 
what they would do, Mr. Stephens, but — 

DR. GOOSBY: Mr. Garibaldi, go ahead. 
MR. GARIBALDI: The bottom line is, Commissioners, 
is that the Court will decide what the appropriate procedure is. 
MS. DUVALL: That's right. 

MR. GARIBALDI: The hearing is on June 29th, and I 
would assume shortly thereafter we'll have direction from the 
Court as to what to do. 

DR. GOOSBY: Legally — legally — what, we have to 
bid certain items. We don't have the choice of an R.F.P. 
MR. GARIBALDI: That's correct. 
DR. GOOSBY: What is that distinction? 
MR. GARIBALDI: The distinction is based on that 
provisions of the charter that say where a tenant is going to be 
given a lease which provides for exclusive occupancy of space on 
the airport, then it must be competitively bid and awarded to 
the highest responsible bidder. Where there's no exclusive 



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occupancy of space given, then competitive bidding is not 
required. 

DR. GOOSBY: Does this fall within those guideline? 
MR. GARIBALDI: It's a situation where, as I 
understand the technologist of this, AT&T or M.C.I, or whoever 
is providing this long distance service will not have any 
equipment on the airport at all. They will not occupy any space 
on the airport. Therefore it does not have to be bid. 

DR. GOOSBY: But they will have an exclusivity. 
They will have an exclusive right to do that. 

MR. GARIBALDI: It's kind of a modified kind of 
exclusivity. 

If you don't select a long distance carrier when you 
use the public pay phone, you will get whoever the Commission 
awards a contract to. But if you want to use another carrier, 
you have their access card, you can use another carrier. 

MR. STEPHENS: I understand that they're taking the 
position, they're taking the position that this exclusivity of 
our long distance lines or whatever it is brings them within the 
parameters of the must-bid statute. 

We're taking the position, since they don't occupy 
any physical space, it takes it out of it. We're leaving it to 
the Court to decide on June 29th. 

MR. GARIBALDI: That's the issue, that's correct. 
MR. STEPHENS: But the thing that's before us today 
will preclude M.C.I, from being a competed bidder under any — 



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either circumstance. 

MS. DUVALL: No, I don't understand that. 

MR. STEPHENS: I thought that's why you wanted the 
postponement. 

MR. MAHONEY: No, no. No. 

MR. STEPHENS: Why do you want the postponement? 

MR. MURPHY: What is before us today is purely and 
simply the thought that we should abandon the R.F.P. procedures 
that are being undertaken by the Staff while we wait for the — 

MS. DUVALL: Postpone them. 

MR. MURPHY: Postpone them. 

MR. TURPEN: Postponing the activity until this is 
sorted out. 

MS. DUVALL: Until the hearing. It seems to me that 
it's a reasonable thing to do, because there's a number of 
issues that are up. 

MR. TURPEN: I think there are two issues. Let me 
reduce this to something real simple. 

The Commission said fine, one year, no more than one 
year, make sure you get it done in a year. And I've had, 
clearly, that one registered. The Commission was very — 

DR. GOOSBY: Or less. 

MR. TURPEN: Or less. 

But they said absolutely, that's it, you're not 
getting an extension. 

So, when this arose, our initial reaction was to 



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come back to the Commission and say: Look, here's what's going 
on; this may obstruct the process; we just want you to know 
early on. We don't even have to deal with this if the 
Commission doesn't want to, but clearly the Commission 
understands the problem. 

MR. MURPHY: I don't really understand why we should 
be taking any action today. The Court will do what the Court is 
going to do. 

It seems to me that if we have decided, based upon 
our legal advice, that what we should be doing is out delevoping 
R.F.P.'s, one of which should be M.C.I., then we should simply 
go forward with that process. 

If on the 29th of June the Court tells us that we 
are confused and we have to bid, at that point, that will be 
ample opportunity to change our direction and seek bids. 
MR. TURPEN: Fine. 

MR. MURPHY: But I don't see any reason to stop what 
we're doing simply because a lawsuit's been filed. 

MS. DUVALL: That's assuming that there's not going 
to be a significant amount of effort and cost incurred during 
the ensuing, what are we talking about, a month? 

MR. TURPEN: Should be, a month, yeah. 
Actually a lot of our efforts directed. Then I'd 
suggested, the Commission is obviously aware of the problem and 
aware of the situation, and I see no need to pursue this matter. 
DR. GOOSBY: And as you pursue this, some 



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explanation should be given as to why the Staff feels that it's 
to our advantage to have an R.F.P. instead of a bid on this. 

That's a very cherished institution in the bidding 
process. And I think most of the Commissioners, and I know I 
do, I watch it very carefully; because I don't want to see us 

6 making exceptions to certain cases and doing it in certain 

7 cases, because this is where the politics and relationships 

8 between individuals come into play. And I'd like to keep that 

9 very clear and up front as to what we bid and what we don't bid 

10 and if we're not going to bid it, why aren't we going to bid it 

11 MR. TURPEN: Okay. 

12 DR. GOOSBY: I think that's very important. 

13 MR. TURPEN: That's correct. 

14 DR. GOOSBY: More important than the other issues 

15 and facts. 

16 MR. TURPEN: Not a problem. 

17 MR. BERNSTEIN: I would also call attention to that 

18 the Commission will vote in a year upon the suggestion of Staff, 

19 and we will take approximately six months to compare the 

20 documents. 

21 MR. TURPEN: No; I understand. 

22 MR. BERNSTEIN: That is what I think Don asked. 

23 MR. TURPEN: That's right. That's exactly right. 

24 I mean, at the time we came to the Commission, we 
had a number of outstanding bids, and we had a significant, 
matter of fact, we lost two or three key people in that 



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division. 60 percent of the division decided to seek other 
employment. So we just got caught in a very difficult time 
frame. 

It's not a function of the fact that it necessarily 
takes a year to do a specific item, but when you fold it in with 
all of the other items going on, you know, it's just a matter of 
priorities and time. 

DR. GOOSBY: Do you just want to move this table, 
then? 

MR. TURPEN: I think that would be the way to do it. 

MR. MURPHY: Yes, I move. That will be fine. 

DR. GOOSBY: And I second it. 

MR. MAHONEY: All right. Thank you very much. 

MR. BERNSTEIN: Until the decision on the 29th. 

MR. TURPEN: We'll come back to you at some point 
and let you know what's going on, as soon as we know. 

MS. DUVALL: I don't think we have a current issue. 

MR. TURPEN: Soon as we know, we'll let you know. 

MR. BERNSTEIN: Fine. 

MR. TURPEN: Items 4 and 5 I'm asking be removed 
from the calendar, Associated Limousine did — 

MS. GITTENS: They paid and submitted their bond. 

MR. TURPEN: I'm sorry? 

MS. GITTENS: They paid and submitted their bond. 

MR. TURPEN: They paid and submitted their bond and 
cured their... 



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DR. GOOSBY: Deficiency. 

MR. TURPEN: ... deficiency. 

MR. BERNSTEIN: Items 4 and 5, then, in other words 
the contract has been — 

MR. TURPEN: The contract is still in full force ar 
effect. So Items 4 and 5 will be taken off calendar. 

MS. DUVALL: Excuse me, as an point of information, 
when is that contract up? 

MS. GITTENS: It will be up in February of 1990. 

DR. GOOSBY: That's right. Okay. 

Now they can all go. 

MR. TURPEN: 4 and 5 are off. Item 6 is next. 

MS. CARAMATTI: Item 6: Bid Call: Hotel/Motel and 
Cable Car Advertising. 

MR. TURPEN: Excuse me. 

If there was anybody here to speak to Items 4 
and 5, those matters have been taken off calendar by the 
Airports Commission. 

MR. FENYES : But can I make a statement on Item 4? 

MR. GARIBALDI: No. 

MR. TURPEN: No, not really. That's up to the 
pleasure of the Commission. 

MR. STEPHENS: There isn't anything to -talk about, 
is there? They aren't on the calendar anymore. 

MR. TURPEN: It's up to the Commission. 

MR. BERNSTEIN: The contract has been reinstated by 



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the payment of the past due indebtedness. 

MR. FENYES : However, the Association wanted to 
clarify their position. 

MR. TORPEN: Well, we ought to let them speak. But 
we do have a time limit. 

MR. BERNSTEIN: You have three minutes. 

ANDREW FENYES 

MR. FENYES: Good morning, we have made payment and 
we don't want to — 

THE REPORTER: Would you identify yourself, please? 

MR. FENYES: I'm sorry? 

THE REPORTER: Your name? 

MR. FENYES: I'm sorry. 

My name is Andrew Fenyes, I'm with Associated 
Limousines, and I'm up here to clarify and to submit to the 
Commission why Associated Limousines held back payment for 90 
days. 

Contrary to popular belief, we have on purpose held 
back on our payment for the length of three months, by the 
advise of our attorney, in order to demonstrate to the airport 
and the Airport Commission our frustrations that we are faced 
with at the airport on a daily basis. 

We have made the payment at this time because we 
wish to continue working at the airport. However, we'd like to 
clarify that the problems have not gone away and that we are 



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clearly faced with these problems on a day-to-day operational 
basis. 

We have a submission that we would like to — 

DR. GOOSBY: Your problems, I think, have you ever 
acquainted us with your problems in the last, say, the last six 
months or the last year? 

MR. FENYES : Well, we deal on a regular basis with 
Airport Staff. 

DR. GOOSBY: I know you have with personnel. 

MR. FENYES: Yeah. 

DR. GOOSBY: But I don't think you've apprised us of 
your problems. 

MR. FENYES: That is correct. 

DR. GOOSBY: Are they similar to the problems the 
Airporter used to have with your space not being preserved or 
whatever? 

MR. FENYES: Primarily speaking, they're operational 
problems. This is most of the reason why we have not actually 
brought it to the attention of the Commission. We tried to deal 
it out with Staff. 

However, my Staff and I have fallen into a position 
where we find this to be a frustrating situation on a day-to-day 
basis, and we can't seem to get far enough with Staff to take 
care of these problems, and this is why we're bringing it to the 
attention of the Commission. 

This was our way, with the advice of our attorney, 



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to bring it to the attention of the Commission. We would like 
to make this submission. And if you read it, you will 
understand some of the issues that we are faced with and why we 
are falling into this position. 

If you have any questions, I would be happy to 
answer them now. 

MS. DUVALL: I would just like to point out that 
written or verbal communication is generally a fairly effective 
means of communication as well. 

MR. FENYES : Well, we have a very large basis of 
written communication, but as I said — 

MS. DUVALL: Well, as Commissioner Goosby pointed 
out, no members of the Commission have received any 
communication from you, and I can't help but let you know that 
your chosen method of showing your... 

MR. FENYES: Your advice is well taken. 
MS. DUVALL: ... concern about operations at the 
airport is not well received by this particular Commission. If 
you've got a written presentation, we'd be happy to receive it. 

MR. FENYES: We will put this in. And your 
information is well taken. And maybe from now on we should 
contacte the Commission and deal directly with you. 

Our understanding was that we should deal with the 
Staff first. I'll make this submission and from here on — 

DR. GOOSBY: Well, you can deal with the Staff 
first, but at least let us know what's going on. 



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MR. FENYES: We will from this point on. Thank you 
DR. GOOSBY: And then if you don't get results fron 
the Staff, then you come to the Commission. 

But it's proper to deal with the Staff. But at 
least let us know, within your communication. We've been down 
this road before with the Airporter. 

MR. TURPEN: Same attorney, by the way. 
DR. GOOSBY: Same attorney. 

And we had a suit to this. And we just want to 
oversee it while this is going on between the Staff and the 
company. 

MR. FENYES: We will, and we will make the 
submissions from now. We did not want to bother the Commission 
frankly, with day-to-day operational problems. 

MS. DUVALL: Quite frankly, it bothers the 
Commission a lot when you hold back your payments for 90 days. 
MR. FENYES: We understand that. 
MS. DUVALL: Okay. 

MR. FENYES: And this is one of the reasons our 
attorney probably advised us to do it this way. Aside from all 
jokes on the matter, I'm sure that he knows what he is doing, 
and this is why we have him as our attorney. 

In any case, we will submit these problems at this 
point, and from now on we will deal with the Commission. Your 
advice is well taken. 

MS. DUVALL: That's great. 



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MR. FENYES: Thank you. 

MS. DUVALL: Thank you. 

MR. BURK : There are a few cab drivers here who 
would like to briefly say some things about our position at the 
airport. 

MS. DUVALL: Cab drivers? I don't think this is ~ 

MR. BERNSTEIN: What do you want — 

MR. TURPEN: We let Associated speak. 

MR. BURKE: My name is Ed Burke, and I'm the 
President of the Cab Drivers Association in San Francisco. 

MR. BERNSTEIN: This is not the time for that. 

MR. MURPHY: Well, I think that we've heard from 
Associated, and now he wants to comment on the same thing. 

MR. BERNSTEIN: That's fine but ~ 

MR. TURPEN: I would just encourage you to keep you 
comments to three minutes. 



ED BURKE 

MR. BURKE: There's a few people behind me, we will 
all be very, very brief. 

We have a lot of problems with Associated out at the 
airport. They misrepresent themselves — 

MR. TURPEN: Excuse me, can you tilt that mic up to 
your mouth, please? 

MR. BURK: They misrepresent themselves as cab 
drivers, they lie about our fares, they basically are taking our 



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customers away from us. We would like to have something done 
about it. I have 11 statements from drivers I'm going to 
submit. 

DR. GOOSBY: Are you a driver? Who are you, 
you're — 

6 MR. BURK: I'm a cab driver with City Cab, and I 

7 also represent the drivers organization. I'd like to submit 

8 these statements to you. And there's a few other people who 

9 would like to just say, real briefly, some things. 

10 MR. TDRPEN: What was your name? 

11 MR. BURKE: Ed Burke. 

12 MR. TURPEN: Ed Burke, okay. 

13 MR. GALE: I would like to speak oh Item 5, even 

14 though it's off the calendar. 

15 MR. MURPHY: Item 5 I don't think can conceivably b< 

16 relevant if Associated has cured it's default. 

17 MR. TURPEN: That's right. 

18 MR. MURPHY: I don't think there's any issue. 
19 

20 CHARLES GALE 

21 MR. GALE: Mr. President and members of the 

22 Commission, my name is Charles Gale, and I'm a cab driver in 

23 San Francisco, a working cab driver. 

24 We don't dress quite as well as the limousine 
drivers. Our colors aren't very garish, and they're not white 
and black. But we do something that no other form of 



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transportation at the airport does, and I think this is a good 
time to bring it up, and that is, we provide service 24 hours a 
day to anyplace, starting at the Hilton at the airport, all the 
way to the San Jose Airport. 

The point is that we are getting the worst part of 
the deal, even though we're offering the most complete service. 

Associated, as it's been said, misrepresents itself. 
They break your own rules three different ways at least. They 
park in a white zone, which is not a parking zone, which is 
meant only for them to pick up their preappointed fares; they 
solicit, in the airport, away from their desk, and misrepresent 
themselves and the price of taxicab service; and three, they 
generally do not provide the service and don't tell the fare 
that they've approached and solicited what service the other 
forms of transportation provide. 

Thank you very much. 

MR. TURPEN: Thank you. 

MR. MURPHY: Mr. Chairman, I'd like to make a 
suggestion here. I'd like to hear at the next meeting a report 
from the Staff as to what this dispute between the cab drivers 
and Associated is all about. I'd like to hear within that 
report whether in the opinion of Staff Associated has breached 
their lease in any other way than simply nonpayment of rent, 
which has now been cured. And at that time the Commission can 
decide what action it desires to take. 

DR. GOOSBY: And what Associated ' s complaints are. 



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MR. MURPHY: I'd like to hear Associated's 
complaints, I'd like to here the drivers' complaints. But I 
think it should come as a Staff report. I don't want to have 
free-for-alls with people coming in here. And I would like to 
hear as part of it whether Associated has or has not breached 
the terms of its lease — or operating permit at the airport. 

MR. BERNSTEIN: Do you have anything to add to this? 

MIKE SEALEY 

MR. SEALEY: Very briefly, sir. 

My name is Mike Sealey, I'm the Public Relations 
Director of the CD. A. I've been a driver for Yellow Cab in 
San Francisco for four years. 

Most everything that I would have liked to have 
covered has already been covered by Mr. Burke and Mr. Gale, 
except I must stress that the practices that Associated Limosine 
does with apparent impunity up in the boarding area — 

MR. BERNSTEIN: We're going to get that in our 
report. There's really no point to go over it. 

MR. SEALEY: Okay, all I wish to say is that if I 
were to do it, it would be a 300 dollar fine and I could risk 
the loss of my job. 

MR. TURPEN: Thank you. 

DR. GOOSBY: You see, all this can be rehashed at 
the special meeting that's been called for, a special agenda 
item. So, I think the Chairman is perfectly in order saying 



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that saying that everybody else who wants to speak to this issue 
just hold their fire, until we have it as an agenda item, a 
Staff report, when we look at both sides of this question. 

MR. SALEY: Thank you very much. 

AUDIENCE SPEAKER: Commissioner, will we be notified 
when you have rescheduled the item? 

MR. MURPHY: Oh, yes. 

MR. TURPEN: You can just contact the airport. 
Contact the airport, landside operations, anybody there would 
let you know. 

AUDIENCE SPEAKER: Is it possible that I could 
continue to speak on this issue, briefly? 

DR. GOOSBY: No, no. 

MR. MURPHY: Who are you? 

MR. BERNSTEIN: No, no. No, no. Wait a minute. 
We're going to have a meeting — 

DR. GOOSBY: We're going to have a special meeting. 
Why do you want do waste our time now — 

AUDIENCE SPEAKER: Okay. 

DR. GOOSBY: — when we're going to have a special 
session? And your comments, you won't be able to say them next 
time. They'll being lost on the wind. Next time we're going to 
make a decision about it. 

AUDIENCE SPEAKER: Great, thank you. 

MR. BERNSTEIN: Next. 

MR. SEALEY: Thank you very much. 



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MS. CARAMATTI: Item 6, Bid Call: Hotel/Motel and 
Cable Car Advertising. 

MR. TURPEN: I believe you have someone who may want 
to speak to this matter. Mr. Gordon is here. 

MR. BERNSTEIN: Is there anyone on this one, Don? 
MR. STEPHENS: This is number seven? 
MS. CARAMATTI: ... six. 
MR. BERNSTEIN: Number 6. 
MR. STEPHENS: No. 

MR. TURPEN: No one will speak to this? Surprised 
me. 

Okay, this is a recommendation from Staff to 
authorize Staff to receive bids for the hotel/motel, cable car 
advertising. 

As the Commission remembers, Staff had proposed 
initially to do this in-house. 

There was some suggestion that it should be bid, and 
that the bidding process would yield a comparable financial 
benefit to the City. Staff is prepared to bid it at this time 
and asks your permission to do so. 

MR. MURPHY: Mr. Turpen, have you seen the letter 
from Ackerley Airport Advertising dated June 5th? 
MR. TURPEN: No. 
MR. BERNSTEIN: You have not? 
MR. TURPEN: "No." 
DR. GOOSBY: Do you want it now? Or do you want to 



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look at it later? 

Well, as I read it, Pat, they don't want us to set 
it out at this figure. They're projecting a higher figure than 
we're bidding it at. 

MS. DUVALL: As they did in the prebid conference. 

DR. GOOSBY: Yeah. Kind of a routine criticism. 

MR. TURPEN: I think there are two issues here, very 
simply. One, the Staff came in and said we can achieve a 
certain return, or certain revenue from this operation, doing it 
in-house. 

There was some representation that possibly the 
private sector could do as well. Fine. We're prepared to test 
that. If in fact it does materialize, then obviously that's 
good for us. If it doesn't, then I think we'd have to come back 
to you with a re-think on whether or not we should be doing this 
in-house. 

MS. DUVALL: Okay, we — 

MR. BERNSTEIN: After five years, would you want to 
take on the duty and the job of advertising? 

MR. TURPEN: What do you mean? 

MS. DUVALL: Well, Staff has — 

MR. BERNSTEIN: If you think Staff can do it better 
than they can or as well — 

MR. TURPEN: Well, no, I don't think that's the 
issue, Commissioner. 

The issue originally was that the Commission had 



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talked to Staff about trying to pull some of these things 
in-house. This appeared to be one where we thought we could do 
that. We could, like a test case, do it in-house. 

The objections of certain potential bidders caused 
the Commission to rethink that. And frankly, for me to come 
back to you and say, sure, we'll bid it, but we'll bid it 
at $100- or $200,000 less than we thought we reasonably could 
get by doing it ourselves would not be appropriate. 

MS. DUVALL: I need a little refresher on some of 
the points here. 

As I recall the last time this issue was before us, 
there was a question as to the cost. As I understand, this 
number $534,735 is equivalent to the revenue that was produced 
by Ackerley Advertising. Is that right? 

MS. GITTENS: That's right. The issue — 

MS. DUVALL: And that — 

Let me just follow my train of thought here. 

MS. GITTENS: Okay. 

MS. DUVALL: And that that is at the same time the 
number that Staff proposes to be the net return from in-house 
operations? 

MS. GITTENS: No. The gross return. 

The issue was that if it was done in-house, all of 
the revenue would be concession revenue for purposes of the 
City's annual payment, annual service payment. The cost would 
be airport costs. The City would get the 15 percent annual 



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service payment amount on the revenue; not the net return on the 
service. 

MS. DUVALL: Okay. 

MR. BERNSTEIN: In other words, you think that Staff 
can produce a greater profit to the airport than the — 

MS. GITTENS: Not to the airport. To the City. 

MS. DUVALL: To the City. 

THE WITNESS: To the City's annual service payment. 

MR. BERNSTEIN: Oh, to the City? 

MS. DUVALL: Yes, because our base on which the 15 
percent to the City would be derived would be the revenue base 
of $534,000. 

The operating costs of that particular operational 
segmented of the airport would be covered with the general — 
within the general budget. 

MR. BERNSTEIN: Well, why don't we see throw 
everyone out and do it all? 

MR. TURPEN: Well, this is the first step. 

MR. BERNSTEIN: No, no. I mean it. I wouldn't say 
it that way. But we might be misunderstood and people will 
think that. 

But if someone's going to build a business.... 

I think I met Mr. Ackerley once, if there is a 
Mr. Ackerley. But I've been in business, I guess most of the 
members of this Commission have been in business and are in 
business; and afte ( r working up a business and having the revenue 



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of "X" dollars, for you to raise the rent to "X" dollars doesn't 
show — or a minimum of "X" dollars, it doesn't quite seem fair. 

I think we maybe ought to try that on some of the 
other concessionaires, too. 

MR. TURPEN: Either that or the Commission can 
change — 

MR. BERNSTEIN: I think I could run some of the 
concessions on behalf of the City as well as they run them. 
That's over 60 years. 

MR. TURPEN: I'm happy to do whatever the Commission 
wants on this one. We — 

MR. BERNSTEIN: Oh, no, no. It's not a matter of 
doing what the Commission wants. Let's do what we think is the 
right thing to do for the people of the City. 

MR. TURPEN: Well, I think that's where we started 
before Mr. Gordon wrote his first letter. 

I mean, the original proposal here was the one where 
Staff would take this function over. We felt it was a function 
we could take over. 

Because of objections from the bidding community, 
the Commission elected to look at this in the alternate, okay, 
in the alternate; one of the criteria we used was we wanted to 
have that same bottom-line number, because part of it was a 
commitment we made in a total package to the Mayor in January 
with respect to certain things we do. 

MR. BERNSTEIN: Why don't we take over the 



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newsstands? 

MR. STEPHENS: Could we take this through and ask 
Host to pay us its gross revenues? 

MR. TURPEN: That's a thought. 

MR. BERNSTEIN: I wouldn't say it that way. 

MR. STEPHENS: No. 

MR. BERNSTEIN: I wouldn't say it that way. 

MR. MURPHY: Well, let me make sure I understand 
this. As I understand what the Staff is saying is that they 
believe that there will be bids at this amount, because the 
bids — 

MR. TURPEN: Not really. 

MS. GITTENS: Let me just remind you what the 
Commission instructed the Staff to do — 

MR. MURPHY: Okay. 

MS. GITTENS: — when this came up before. 
We had started with a approval for in-house. 

MR. MURPHY: Yeah. 

MS. GITTENS: Ackerley Advertising objected to that, 
suggested that we try bidding this. If we had a certain dollar 
amount in mind — which we did, which was the $534,000 — that 
we try for that as the minimum bid. 

Commission instructed Staff to bid this as a 
concession with $534,000 as a minimum bid. If we did not 
achieve that, then the Commission would reevaluate the idea. We 
could either go back to in-house, the in-house proposal, or bid 



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it at a lower amount. 

MR. MURPHY: At a lower amount. 

MS. GITTENS: That's right. That's right. 

So we are now at a point of bidding this out at 
this 534,000 dollar amount. 

MR. BERNSTEIN: To find out what you get. 

MS. GITTENS: That's right. 

MR. BERNSTEIN: If we ask all our bidders to give us 
a resume of their experiences and to — and then we determined 
whether they're capable of running a business according to our 
likes. 

MS. GITTENS: Well, we established — 

MR. BERNSTEIN: Who on your Staff or our Staff is 
capable of matching the ability of a firm like this? 

MR. TURPEN: Excuse me, Commissioner, I think that's 
not the issue. The issue is — 

MR. BERNSTEIN: Wait a minute, the issue is — 

MR. TURPEN: The issue is the Staff came — 

MR. BERNSTEIN: I'm going to trade down. 

MR. TURPEN: The issue is the Staff came to the 
Commission prepared to do something. The Commission, in 
response — 

MR. BERNSTEIN: I'm not trading down. ■ 

MR. TURPEN: — in response to external information 
from outside bidders, elected to persue another course under 
certain criteria. We are simply responding to that, to what the 



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Commission asked us to do. 

If the Commission wants us to reduce the minimum, we 
will do that. If the Commission wants us to take it back 
in-house, we will do that. 

However, I believe that the course which the 
Commission plotted last time was a prudent course. Set our 
standard. If private, and the private sector can match our 
standard, fine. It's the end of the issue. If they cannot, 
then I think the Commission has the decision to make, to lower 
the minimum or send it back in-house. 

MS. DUVALL: Well, it seems to me that there's an 
interesting business issue here. Because if in fact the 
Airport Staff can operate this and generate — maintain the 
revenue level that Ackerley, that the outside contractor 
established, and if we can operate this ourselves, maintain that 
revenue level, that the ultimate economic benefit to the City is 
pretty clear; that that is the standard, that that is the 
mandate of this Commission, to establish that standard and go 
forward against that. 

If the outside contractor is more skilled in this 
particular business enterprise that it can exceed that 
particular revenue level, to the extent that this minimum bid 
makes some sense on an outside business enterprise, then that's 
another kettle of fish. And then we've got some viable bidders 
for the operation. 

It looks like that's pretty unlikely, is what the 



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potential candidates for this business are telling us, that it's 
very unlikely that anyone is going to be able to conduct this 
business, generating the revenues that are going to allow for 
this kind of a minimum bid and any kind of net revenues left 
over. 

MR. MURPHY: But the whole point of a bidding 
process — 

MS. DUVALL: If we can operate at that level, I 
think we need to. 

MR. MURPHY: The whole point of a bidding process is 
to find out what happens — 

MS. DUVALL: Right. 

MR. MURPHY: — when we open the envelopes — 

MS. DUVALL: That's correct. 

MR. MURPHY: And it seems to me that we set 
ourselves in that direction — 

MS. DUVALL: That's right — 

MR. MURPHY: — and the Staff — 

MS. DUVALL: — but we do need to continue. 

MR. MURPHY: — has faithfully carried out our 
directions — 

MS. DUVALL: But we need to continue. 

MR. MURPHY: — and we ought to go right ahead and 
see what happens. 

MS. DUVALL: Yeah. 

MR. BERNSTEIN: But if this thing follows through, 



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and then we run and then we ask for people to bid on any 
particular space for a business, there must be some doubt that 
if I do a good job, I'm going to lose it. That's a hell of a 
way to go into a deal. 

MR. MURPHY: Well, this — 

MR. BERNSTEIN: I wouldn't want to do it. 

DR. GOOSBY: They'd have to bid it anyhow. Mo. I 
mean, in other words their time is up, and they can enter into 
the bidding. 

MR. BERNSTEIN: I know, but they can't bid it if the 
low bid is their total revenue. 

DR. GOOSBY: Well, maybe somebody else can. 

MR. MURPHY: But Mo, last years revenues — 

MR. BERNSTEIN: That's different. I know I 
wouldn' t. 

MR. MURPHY: Last years revenues are merely a 
predictor of what the revenues in the future are going to be. 
They can raise their advertising charges. There can be 
inflation factors. There can be all sorts of components in it. 

They can expand space. They can manage it better. 
There's a lot of possibilities. 

And it seems to me that we set ourselves in a course 
before to go out and see if they bid it and at least if this 
amount could be we obtained. And we ought to go right out and 
find out what happens. 

And if the answer is no and this letter that we have 



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received is correct that there is no bidder, then we've gained a 
valuable piece of information. We'll then decide whether to 
operate internally or to rebid it under a different format. 

DR. GOOSBY: The discussion we've had here is 
premature. 

MR. MURPHY: Also, I don't want to tip our hand, 
frankly, in what we'll do if this bid doesn't come in. I don't 
think that would be a very good idea. 

DR. GOOSBY: Right. 

MR. MURPHY: And I for one am not going to tip my 
hand. 

MR. BERNSTEIN: I'd also want to know what the 
liabilities if we don't succeed. I know what it is in private 
industry. I know what happens if I make a wrong guess. 

What happens here if they make a wrong guess? Or 
will Civil Service say I'm stupid? 

I think we ought to give this a lot more thought. 
If you want to go ahead with it, fine. I just think this sets a 
very bad precedent. 

DR. GOOSBY: There's a motion on the floor? I don't 



know. 



MR. BERNSTEIN: Hum? 

DR. GOOSBY: There's a motion on the floor. 
MR. BERNSTEIN: Will you poll us, please? 
MS. CARAMATTI : Commissioner Bernstein? 

MR. BERNSTEIN: No. 



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MS. CARAMATTI: Commissioner Goosby? 

DR. GOOSBY: Yes. 

MS. CARAMATTI: Commissioner Stephens? 

MR. STEPHENS: Yes. 

MS. CARAMATTI: Commissioner Duvall? 

MS. DDVALL: Yes. 

MS. CARAMATTI: Commissioner Murphy? 

MR. MURPHY: Yes. 

DR. GOOSBY: I don't know whether the President, 
Mr. Bernstein, realizes that all we're doing is saying that 
we're going to prepare a proposal for bids. That's all we're 
doing. 

Ackerley, whose five-year contract is up, just like 
any concessionaire, they can rebid, along with everybody else, 
on the new bid documents. So they're not being excluded. 

MR. BERNSTEIN: I know they're not being excluded. 

DR. GOOSBY: It's just that they think that that 
figure is unfair. The figure that we're asking for the minimum 
bid. 

But we'll find out if it's unfair. It's up to the 
Staff and the Airport to get as much money as they can. 

MR. BERNSTEIN: And Staff ought to also present, I'd 
like to see how Staff arrived at that. 

Commissioner Stephens came up with an idea: Are we 
going to do that with Host? 

DR. GOOSBY: Well, yeah, good question. 



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If we don't get any bids, that can be lowered. 
MR. BERNSTEIN: I just started a business, so, I 
mean, I don't know. I've never been there before. I've 

4 never — 

5 DR. GOOSBY: It's not that far apart from what you 

6 want to do. 

7 MR. BERNSTEIN: I've never bean a retailer, so I 

8 wouldn't know anything about it. 

9 All right, next. 

10 MS. CARAMATTI: Item 7, Bid Call: Contract 

11 No. 2147: Police Locker Rooms in South Terminal. 

12 MR. BERNSTEIN: Lou? 

13 MR. TURPEN: This matter pertains to the development 

14 of some locker room facilities in South Terminal building at a 

15 cost of approximately $330,000. 

16 MS. DUVALL: I wonder if we should — Go ahead, 

17 Z.L. 

18 DR. GOOSBY: I move the motion. 

19 MR. STEPHENS: I'll second it. 

20 MS. DUVALL: Well, I wonder if we should put this 

21 over until we find out what's going to happen with the 

22 consolidation. Because that's something that's.... 

23 MR. TURPEN: This is — 

24 MR. MURPHY: Still going to need lockers down there. 

25 MR. TURPEN: Either way. 
As I said, this is an open issue. This has been 



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going on for two or three — 

We've been actually working two or three or four 
years now to get this sorted out to the point where we've 
finally identified some space. A matter of a few weeks more 
probably wouldn't be material one way or another but I — 

DR. GOOSBY: Well, we can pass it with the 
amendment, it might be interesting, pending the outcome, to see 
that. 

MR. TURPEN: That's fine. Sure. 

DR. GOOSBY: I would move that that be amended to 
the Order. 

MR. TDRPEN: I think Commissioner Duvall's and 
Commissioner Goosby's statements both are appropriate. 

As we move into this thing, there will be a lot of, 
you know, depending on which way it goes, there could be a lot 
of uncertainty; and we'll have to kind of adjust as we move 
through this thing. And, so, with that type of latitude, it 
will permit us to do that. 

Now, there's a time, Denny? 

MR. BOUEY: There's not a time problem. 

MR. TDRPEN: Okay, fine. Fine. 

Then that amendment will be wholly satisfactory. 

DR. GOOSBY: Either withdraw it or else — 

MR. TDRPEN: Or approve it subject to. 

DR. GOOSBY: — or approve it subject to the 
ordinance passing. 



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MR. TURPEN: Right. 
MS. DDVALL: Okay? 

MR. BERNSTEIN: All right. 

MS. CARAMATTI: Commissioner Bernstein? 

MR. BERNSTEIN: Yes. 

MS. CARAMATTI: Commissioner Goosby? 

DR. GOOSBY: Yes. 

MS. CARAMATTI: Commissioner Stephens? 

MR. STEPHENS: Yes. 

MS. CARAMATTI: Commissioner Duvall? 

MS. DUVALL: Yes. 

MS. CARAMATTI: Commissioner Murphy? 

MR. MURPHY: Yes. 

MR. BERNSTEIN: Next. 

MS. CARAMATTI: Item 8, Lease Modification 
No. 7 - United Airlines Lease and Use Agreement No. 82-0126. 

MR. BERNSTEIN: Lou? 

MR. TURPEN: This is a further administrative step 
in the United Airlines acquisition of certain North Terminal 
west-end space which they secured from Eastern Airlines some 
months ago. And this is a further step in that process, this is 
amending their lease, their master lease, to reflect the 
Commission's action in approving the assignment. 

MS. DUVALL: I'll move. 

DR. GOOSBY: Second. 

MR. BERNSTEIN: Lou, this, it's understood, that 



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this will not result in having two international terminals? 

MR. TURPEN: That is correct. 

MR. BERNSTEIN: This is a temporary deal? 

MR. TDRPEN: For most of the space, that's right. 
The majority of it. 

MR. BERNSTEIN: Temporary, in your opinion? 

MR. TURPEN: I think it's two years, and then the 
Airports Commission has the right to take it all back. 

MR. BERNSTEIN: Two years? 

MR. TURPEN: I think it's two years or three. I 
don't remember anymore. It was in the original documents we 
gave to the Commission last time. 

There are about five locations: One the airport 
gets presently; one United will keep, which is down in the op's 
area; and the other three locations United can keep for about 
three years, I guess, and then the Airports Commission can opt 
to take those back. 

MR. BERNSTEIN: This does not entail nor does it — 

MR. TURPEN: It will entail no — There will be no 
dual international arrivals capability at San Francisco Airport. 

MR. BERNSTEIN: Fine. Okay. 

Anything? Don? Anything new? 

MR. STEPHENS: No. 

MR. BERNSTEIN: Pat? 

MR. MURPHY: No. 

MR. BERNSTEIN: All right, call it. 



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MS. DDVALL : I'm sorry, I do have a point of 
information here. It says in Condition B that it's a 90-day 
written notice for C, D, E and F? 

MR. TDRPEN: After that date. Right, after that 
date. 

MS. DDVALL: After 1992? 

MR. TURPEN: Right. That's the termination date I 
was talking about, which would be four, five, six, seven, eight, 
nine, 9000 feet or so. 

MR. BERNSTEIN: Would you call it? 

MS. DDVALL: Okay, thank you. 

MS. CARAMATTI: Commissioner Bernstein? 

MR. BERNSTEIN: Yes. 

MR. TDRPEN: In effect, that space is in the 
terminal lobby, is where that is, at the west end. 

MS. DDVALL: Okay. 

MS. CARAMATTI: Commissioner Goosby? 

DR. GOOSBY: Yes. 

MS. CARAMATTI: Commissioner Stephens? 

MR. STEPHENS: Yes. 

MS. CARAMATTI: Commissioner Duvall? 

MS. DDVALL: Yes. 

MS. CARAMATTI: Commissioner Murphy? 

MR. MDRPHY: Yes. 

MS. CARAMATTI: Item 9: Award of Contract 
No. 1011B.1: Taxiway 'C Realignment D.S. Coast Guard 



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Relocation. 

MR. BERNSTEIN: LOU? 

MR. TURPEN: This is simply an operational 
realignment to accommodate certain aircraft clearances, wing tip 
clearances, on the taxiway. 

MS. DUVALL: This is a permanent improvement? Not a 
temporary measure? 

MR. TURPEN: No. It's permanent. It also will also 
tighten security. 

MR. BOUEY: So, actually, that's a separate issue. 
In this case, Commissioner, we have to realign 
Taxiway 'C, and to do that, we need a portion of the 
Coast Guard. So we're relocating some of their facilities so we 
can have that northwest corner of the Coast Guard facility. 
That will be a permanent easement and, yes, the 
taxiway realignment will be permanent also. 
MS. DUVALL: Okay, thank you. 
Do we have a motion on this? 
MR. BERNSTEIN: Is there a second? 
MR. STEPHENS: Seconded. 
DR. GOOSBY: Seconded. 

What's D.B.E. in participation? 22 percent D.B.E.? 
Did the Human Rights Commission go for this contract? 

MR. BOUEY: Commissioner, under the new federal 
guidelines, they no longer recognize "Minority Business 
Enterprise" or "Woman Business Enterprise." They now recognize 



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"Disadvantaged Business Enterprise," into which mostly 
Woman Business — what companies were formerly known as 
"Woman Business Enterprises" and "Minority Business Enterprises" 
were known as. 

DR. GOOSBY: Why are we using it? We're following 
the term because it's runways and the Coast Guard is involved 
and some federal money? 

MR. BOUEY: That's correct. 

MR. TDRPEN: Hopefully. 

MR. BOUEY: If we ever were to receive our A. I. P. 
money, then we'd be reimbursed for 75 percent of the project 
costs. 

DR. GOOSBY: So for those projects, then, we're 
going to start using this "M.B.E." designation. 

MR. BOUEY: That's correct, on all federal — on all 
projects in which we receive federal grant money. 

As a point of information, there are one, two, 
three, four, "five" M.B.E. firms that are participating in this 
project, among them, one black firm, Alberts Electric, which 
will be receiving $305,000. 

The rest are Filipino and Hispanic firms. 

DR. GOOSBY: "Disadvantaged." 

MR. TURPEN: Yes. 

MR. BOUEY: "Disadvantaged Business Enterprise." 
DR. GOOSBY: That's a connotation by the 
Federal Government that because you're a minor firm, you're 



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disadvantaged. 

MS. DUVALL: I think there's another connotation to 
that, which is that not all minority firms are necessarily 
disadvantaged. 

MR. BOUEY: And there's also one more connotation. 

MS. DUVALL: Not necessarily a very positive 
connotation. 

MR. BOUEY: Commissioner Duvall is quite right. 

But it also looks to take into certain categories of 
other groups, for instance Disabled Vietnam Veterans, whites 
from Appalachia and so forth. 

DR. GOOSBY: That's something new? 

MR. TURPEN: No. It's been banging around for a 
couple of years, now, I think. It's been on the table for, gee, 
it's been three or four years since when they first brought this 
up. 

DR. GOOSBY: When they used that term in education, 
they were slapped plenty by calling them "disadvantaged." 

Call them "culturally different" or something. But 
you don't call them disadvantaged just because they happen to be 
a different race. But, you know, I think that shows the whole 
philosophy of this federal government, this administration and 
the past administrations, towards this whole question. I think 
it's very obvious of what they think of us. I can say that, in 
passing. 

MR. TURPEN: Thank you. 



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MR. BERNSTEIN: All right? 

MS. CARAMATTI: I'll take the vote from the 
Commissioners. 

Commissioner Bernstein? 

MR. BERNSTEIN: Yes. 

MS. CARAMATTI: Commissioner Goosby? 

DR. GOOSBY: Yes. 

MS. CARAMATTI: Commissioner Stephens? 

MR. STEPHENS: Yes. 

MS. CARAMATTI: Commissioner Duvall? 

MS. DUVALL: Yes. 

MR. CARAMATTI: Commissioner Murphy? 

MR. MURPHY: Yes. 

MR. BERNSTEIN: Thanks. 

MS. CARAMATTI: Item 10: Award of Professional 
Service Contract, Sequoia Analytical Laboratory. 

MS. DUVALL: Go ahead. 

MR. TURPEN: Fairly straightforward. 

MS. DUVALL: I'll move. 

MR. TURPEN: It's just lab testing for our waste 
water plant. 

MR. BOUEY: For both our sewage treatment plant and 
our industrial treatment plant, for the more sophisticated tests 
that our plant is not equipped to handle. 

MR. BERNSTEIN: Anything? Lou? No? 

I'll need a second on it, then. 



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DR. GOOSBY: I move it, then, on the motion. 
MR. STEPHENS: Seconded. 

MR. BERNSTEIN: Moved and seconded. Same vote. No 
discussion. 

MS. CARAMATTI: Next item on the calendar is 
Item 11. 

MR. TDRPEN: Items 11 through 14 on the consent 
calendar, Commissioner. 

DR. GOOSBY: Same. 

MR. BERNSTEIN: Any question? Any discussion? 
Anyone? 

All right, go ahead, call the vote. 
MS. CARAMATTI: Commissioner Bernstein? 
MR. BERNSTEIN: Yes. 

MS. CARAMATTI: Commissioner Goosby? 
DR. GOOSBY: Yes. 

MS. CARAMATTI: Commissioner Stephens? 
MR. STEPHENS: Yes. 

MS. CARAMATTI: Commissioner Duvall? 
MS. DUVALL: Yes. 

MS. CARAMATTI: Commissioner Murphy? 
MR. MURPHY: Yes. 

MS. CARAMATTI: Next is a Public Hearing: Proposed 
Privilege Fees for Off-Airport Rental Car Comapanies. 

MR. STEPHENS: Oh, lots of speakers on this 
(handing) . 



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MR. TURPEN: This is a matter on which I know there 
will be a number of speakers. I would suggest that consistent 
with the Commission's policy, the Commission take testimony on 
this matter today, take it under advisement, and I'll 
essentially allow Staff as well to assimilate some of the 
comments, and then we would come back to you at some later date 
with a final response. 

MR. BERNSTEIN: There are some speakers on this 
item. 

MR. TURPEN: Yes, and it would be my suggestion that 
consistent with the Commission's custom and practice they hear 
those speakers and take the matter under advisement. 

MR. MURPHY: I think that's sensible here. 
MR. BERNSTEIN: Andy De Paule of the Good Neighbors 
Airport Shuttle. 

MR. TURPEN: ... of the Good Neighbors 
Airport Shuttle. 

MR. BERNSTEIN: Please keep your remarks to three 
minutes. 

MR. TURPEN: State your name and your organization, 
again, please. 

ANDY DE PAULE 
MR. DE PAULE: Okay. Yeah, Andy De Paule, 
Good Neighbors Airport Shuttle. 

This doesn't of course directly relate to airport 



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shuttles, but I wanted to point out I just saw briefly the 
little flier that went out from the Airport regarding this 
matter, and they've listed numerous airports where currently 
this percentage on off-airport car rentals is in effect. 

Some of those are not quite right, in that at 
Los Angeles Airport the proposal has been dropped, at another 
one it's presently on appeal because it's essentially a tax and 
therefore it grows against Proposition 13. So that may be 
something you want to look into very seriously before you 
implement this or try to implement it. 

The other thing is I think it's very obviously 
something that we have like Hertz, Avis and National behind to 
try to make off-airport companies simply unable to compete with 
them, and that's the only way they can essentially keep their 
rates very high and give the public no options. 

Right now the public has the option of going off the 
airport and getting a reasonably priced rent-a-car, in exchange 
for which all those companies do not get to advertise at the 
airport, they don't get parking facilities, they don't get 
anything at the airport, other than driving up and picking up 
passengers that have already called them wanting to rent their 
vehicles. 

Then last but not least — I'll make mine short, 
because I know there's a lot of people — apparently Hertz, Avis 
and National are threatening that if they don't get something to 
take away this supposed competitive edge, they're going to leave 



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the airport. Lou is always complaining that they don't have 
enough space at the airport, and if they really want to leave, 
it will give you some prime space. Right? I don't think 
they'll leave, but if they do, then we've got a lot of acreage. 

MR. TURPEN: Thank you. 

MR. BERNSTEIN: Thank you. 

Mr. Steve Vaughn from Pacific Car Rental. 

STEVE VAUGHN 

MR. VAUGHN: My name is Stephe Vaughn, I'm the owner 
of Pacific Car Rental in San Francisco. We've been in business 
about 14 years. 

The adoption of this plan, which would be a seven 
and a half percent additional fee to operators like ourselves, 
would simply put us out of business. Our profit margins are not 
seven and a half percent. The adoption of this plan, would just 
eliminate companies like ourselves. 

Now, if the Airport would like to capture the 
customers, the revenues that we generate, we would be more than 
welcome to go on the airport. We'd love to go on the airport 
and pay ten percent as a concessionaire. However, the Airport 
has consistently kept the minimum so high that small operators, 
like ourselves, don't have the option of going on the airport. 

If the Airport indicates that the majors on the 
airport would leave the airport or are threatening to leave, 
they've been threatening for 20 years. I used to be one of 



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them. They have never left. The ones, the one instance they 
left in Houston. I believe Hertz left in Houston and came back 
at first opportunity. 

I appreciate your consideration of my position. 

5 Thank you. 

6 MR. TURPEN: Thank you. 

7 MR. BERNSTEIN: Thank you. 

8 Mr. Oral Hurst of Trip Scott Conklin representing 

9 Alamo. 

10 AUDIENCE SPEAKER: Oral Hurst stepped out Of the 

11 room for one moment. He'll be right back. 

12 MS. DUVALL: We'll go on to the next one. 

13 MR. BERNSTEIN: All right. 

14 Mr. Robert K. Madgett. Is that correct? 

15 MR. MADGETT: Yes. 

16 MR. BERNSTEIN: Representing the Hertz Corporation. 
17 

18 ROBERT K. MADGETT 

19 MR. MADGETT: Thank you, Mr. President, Members 

20 of the Commission. I'm Robert K. Madgett, M-a-d-g-e-t-t, 

21 Vice-President of Properties for Hertz Corporation, and I'm 

22 really happy to be back in San Francisco today, after having had 

23 the privilege of living here 15 and a half years and making the 

24 drastic mistake of going to the East Coast and becoming a part 

25 of a corporate bureaucracy. 
So I love the weather this morning, the lack of 



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humidity, and the chance to go to the wharf to get some crab. 

I'd like to clear up a couple statements that have 
been said and probably will be said by others that follow me. 
One is that Los Angeles International Airport has not dropped 
its proposal to do something similar to what the 
Airports Commission is looking at now. They are in a stage of 
evaluating two public hearings, putting together resolution that 
will go to the Airports Commission probably late this month or 
early next month. 

There is litigation on this issue in the State of 
California, there is also actions in the state legislature to 
prohibit cities that own and operate airports from assessing 
fees for the rights and privileges to do business at the 
airport. 

I think that our company's name is drawn through the 
mud on several occasions. We did leave Houston Hobby Airport 
over a contractual dispute, because the concession fee requested 
was ten percent. When that fee was reduced to eight percent, we 
rebid the contract. That was the heart and basis of that suit. 

I've worked San Francisco International Airport for 
the Hertz Corporation for 20 and a half years, and I can assure 
you that in those 20 and a half years, as the official spokesman 
for our corporation, before this Commission, before the Staff, 
and before the City itself, the Hertz Corporation has never 
threatened the City and County of San Francisco to go 
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International Airport. 

And I really resent these kinds of statements being 
made against our company. 

We do support Director Turpen and his Staff's 
proposal to assess fees for the off-airport rental car 
operators, which reflect the economic benefits they receive 
from access to the airport. 

The fee structure in our opinion will end the 
subsidy that off-airport rental industry has received over many, 
many years, especially received over the last five years, the 
subsidy paid by airport tenants, not only car rentals but other 
concessions and other tenants that you have occupying space in 
the three terminals at San Francisco, and ultimately, the air 
travel public at large. 

The off-airport car rental industry is one of the 
fastest growing industries, "segments," I should say, of our 
industry in the country. Some operators, their growth factors 
have been tremendous. 

San Francisco International Airport is the world's 
second largest car rental market, following Los Angeles and 
preceding Orlando. The majority are no longer what you'd call 
mom and pop organizations. They are companies that invest as 
much as 22 and a half millions dollars in a facility at 
Los Angeles; they are companies who are rated in certain stock 
market interpretations as the hot buys of the year, such as was 
state in several business publications relative to Thrifty 



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Rent-a-Car. 

We're talking here about off-airport multi-million 
dollar car rental corporations. And when they come before you 
and argue for low, flat, per-trip fees or no fees or fees that 
do not even come close to covering the costs that you incur in 
managing and operating the airport, rather than fees based upon 
a percentage of gross revenues, they are asking you to only 
continue the subsidy and for an advantage which discriminates 
against even some of the smaller off-airport companies. 

Off-airport car rentals, because of this subsidy and 
their lower costs, do siphon off business from the on-airport 
rental car companies. 

I think that the Staff has adequately stated in its 
report to you today that we last year paid close to $14,000,000 
as concession fees to the City, the five existing on-airport 
concessionaires. 

The off-airport companies, through the access fee 
that you have established now, paid approximately $35,000 and 
are probably doing probably $20- to $30,000,000 in business 
off-airport versus what the Staff's estimates are. 

The ability of local airports to charge percentage 
of gross revenue fees for off-airport operators has been upheld 
in Federal and State Courts, and as I've already said, is 
currently under appeal here in the State of California. We feel 
that it's time to end the unfair subsidy paid by airport tenants 
and the traveling public to the healthy and burgeoning 



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off-airport rental car industry. 

I thank you very much for your time. 

MR. TURPEN: Thank you. 

MR. BERNSTEIN: Thank you. That's it? 

MR. STEPHENS: No. There's one more. 

MR. TURPEN: No, no. We have one gentleman who 
stepped out of the room, I believe. Didn't we pass one 
gentleman? Alamo? 

MR. BERNSTEIN: The gentleman renting Alamo. 

DR. GOOSBY: Is he back? 

MR. HURST: Yes, I'm back. 

DR. GOOSBY: Okay. 

MR. BERNSTEIN: Mr. Hurst? 



ORAL HURST 

MR. HURST: Yes, I'm Oral Hurst. 

I'm Oral Hurst with Trip, Sky, Conklin & Smith. 
I represent Alamo Rental Car. 

I think there are a couple of problems to begin 
with, with the actual proposal. There's a fundamental 
misunderstanding of the distinction between an on-airport and an 
off-airport rental car company. 

There have been, I think there's been, much talk 
around the country about a level playing field. The problem 
with a level playing field in this instance is that we're 
playing in different ball games. 



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The on-airport companies have a substantial 
advantage in being on airport, and they have a business 
relationship with certain clients that makes it necessary for 
them to be on airport to best serve their customers. They have 
a large percentage of their customers are business clients. 
They contract with the corporate giants in the country such as 
I.B.M., et cetera, and for that reason they need to be 
on-airport to provide them with what is viewed as the most 
efficient means of servicing a rental customer. 

On the other hand, the off-airport companies tend to 
serve a large percentage of vacationers and leisure travelers 
who are on very tight budgets. And for that reason, we need to 
try to minimize the costs that we incur and therefore try to 
minimize the rental price that we charge our customers. 

The on-airport companyies on the other hand are free 
to charge a much higher rate because what their clients, the 
actual corporations, many of them — that are in contracts with 
Hertz, for instance, or Avis, for instance — are looking for is 
a level of convenience to their employees as they travel around 
the country, which they perceive to be above that of the 
off-airport companies. 

For that reason Hertz is consistently on-airport. 
Avis is consistently on-airport. If they don't choose to use 
the off-airport locations. 

Around the country they have threatened airports 
with going off the airport, as with companies such as Alamo, and 



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locating near the airport, busing their customers over; but in 
reality they've never done that anywhere except Houston Hobby 
Airport. And within a year after doing that, they were back to 
the airport begging to get back on. They realized that that 
type of setup is not the means to best serve their particular 
customer base. 

My understanding is they've recently received 
approval to go back on the airport in Houston. 

So, what I am saying is that any threat they would 
have to go off airport is, in reality, a facade for an attempt 
to try to hold down the competition from the other companies out 
there which are trying to better serve leisure customers, a 
customer base which is completely different from that of Hertz 
and Avis. 

As far as the decisions in California itself, there 
is the Orange County decision in which the airport authority has 
been ordered to refund all of the money which was collected and 
to cease collecting any further. That is subject to appeal. 

But my suggestion would be, in the best interests of 
everyone involved, to wait until after that appeal is concluded 
before considering imposing any percentage fees. It seems like 
the most sensible manner in which to proceed, given the legal 
action. 

There are other cases around the country which are 
still pending, for instance, the Sarasota decision in Florida, 
there, the issue of commerce clause violations on a — of a 



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national level, Federal law rather than State law, is still 
pending on appeal. The issue as far as the Fourteenth Amendment 
has been resolved in that particular circuit, a circuit unlike 
the one out here, obviously. 

I think that many airports around the country have 
abandoned the idea of imposing a gross receipts fee, and instead 
have adopted a per-contract fee or a per-shuttle-bus-trip fee, 
which they believe fully compensates them for the expenses which 
the Airport incurs as a result of the shuttle bus trips. 

We don't have a problem with paying a per-contract 
fee or a per-trip fee which is reasonable to compensate the 
Airport for wear and tear or on the roadways, for traffic 
control, et cetera. That's the reason why Las Vegas, for 
instance, abandoned percentage fees on per-contract. That's why 
Fort Lauderdale is about to go on the per-contract fee. That's 
why Orlando is using a per-contract fee in addition to a small 
per-shuttle-bus-trip fee. 

Those sorts of arrangements are reasonable ones and 
ones in which we would cooperate with the airport in attempting 
to work out, so that everyone can have their particular needs 
resolved to the best interests of all parties. 

When you're talking about paying a percentage fee, 
you're talking generally about turning over information to the 
Airport which we consider to be proprietary and confidential and 
information which we should not have to reveal to the Airport or 
any other public entities, because we are not in a contractual 



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relationship with the Airport. 

The only relationship we have with the Airport is 
that we drive up our shuttle buses. 

The only other additional benefit we derive is that 
we pay extra money for a bank of telephones on the airport 
that's a separate item. It's not at all connected with driving 
up the shuttle buses, and we think it's proper to charge 
separately for those phone banks. 

Those are the problems that we see with the proposal 
in its present form. And we would suggest that instead of a 
percentage fee, that the Airport explore the possibility of 
simply a per-trip fee or possibly a per-contract fee, something 
that's designed to reasonably compensate the Airport for the 
expenses that it incurs. 

MR. TURPEN: Thank you. 

DR. GOOSBY: There is a phone bank? There is a 
phone bank out there that even the off-airport people have 
access to? 

MR. TURPEN: Well, I'll tell you, I don't know the 
answer to that question. 

DR. GOOSBY: How do people contact the off-airport 
rental agencies? 

MR. TURPEN: Is there a phone bank? Down at 
hotel/motel? 

MS. GITTENS: Yes, at the hotel/motel stand. 

MR. TURPEN: There is, down by the hotel/motel. 



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DR. GOOSBY: There is a phone bank, which is private 
lines for the off-airport people. 

MR. TURPEN: I'm sure it's a ring-down system. 

DR. GOOSBY: And they put their phone there, with 
their name on it. 

MR. TURPEN: It's through the hotel/motel contract. 

DR. GOOSBY: Oh, through that contract. Okay. But 
their name is not on it? They have to ask for them? 

In other words, I'm trying to see, if I got off an 
airplane, and I wanted to call Alamo — 

MR. TURPEN: Just pick up the Alamo phone and it 
rings automatic. It's an auto-dialer. 

DR. GOOSBY: Does it have Alamo's name on it? 

MS. GITTENS: I believe Alamo is on there. I don't 
remember. 

MR. TURPEN: I think it is. 

MS. GITTENS: There are quite a few off-airport 
rental cars on there. I don't happen to remember if Alamo is. 

DR. GOOSBY: There is some advertising at the 
airport, then. Right? 

MS. DUVALL: Is that all through the hotel/motel 
advertising mechanism? 

MS. GITTENS: Yes. 

MR. TURPEN: Yes. 

MS. DUVALL: So, that's not a direct relationship 
with the Airport. 



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MR. TURPEN: Correct. 

I would, if we've heard all the speakers, I'd 
suggest two things, consistent with the Commission's policy, 
that they close the public hearing and take the matter under 
advisement, and the Staff stands ready to execute any 
instructions the Commission might have in the interim. 

MR. STEPHENS: Mo, is that all right? Is that all 
right? 

MR. BERNSTEIN: Yeah. 

That's it. 

MR. TURPEN: The public hearing is now closed. 

MR. BERNSTEIN: All right. 

MS. CARAMATTI: There's one more item. 

MR. TURPEN: Yes, there's one other item. 

Would it be helpful to the Commission if Staff were 
to convene a quasi-prebid type conference with some of the 
persons who wanted to share some more detailed views with the 
Staff, and then bring those back to the Commission, along with 
our views for the next meeting? 

MR. BERNSTEIN: Um-hum. 

MR. TURPEN: I'd suggest, we have a meeting on 
July 18th, and I'd suggest that — I don't even know what today 
is, the 6th? 

I think that what we can do is if the Commission 
would permit — we have a holiday beginning of July, which 
throws the meeting schedule off a little bit — but we could 



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come back to the Commission on July 18th, having accomplished 
that, set up a meeting, and distill all that information into a 
package for the Commission on the 18th of July, if that's 
agreeable. 

MR. BERNSTEIN: Yes. 

MR. MURPHY: I think that's sensible. 
MR. BERNSTEIN: Yes. 

MR. MURPHY: I think this is a very significant 
decision, and it should be very carefully thought through. 

MR. TURPEN: Well, then we will have a quasi, 
somewhat like a quasi-prebid — 

MS. DUVALL: Would you include in that information 
some background on the per-contract fee relationship that 
Mr. Hurst spoke to? 

MR. TURPEN: Be delighted to. 

DR. GOOSBY: And then examine our policy, our 
historical policy as a Commission, as it relates to small 
businesses. Do we have that? 

Because it's been my impression that we have had a 
policy trying to encourage the development of small business. 
MR. TURPEN: That's right. And the definition of 
that as well, I think we went through a definition of that. 

DR. GOOSBY: Would it be consistent with this 
proposal? 

MR. TURPEN: Okay. 

MR. STEPHENS: Also maybe a little more on the 



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proposal that we exclude from the provision businesses below a 
certain dollar amount, with names of who that would include and 
who it wouldn't include, and if we have an idea of what the 
gross revenue of the various off-airport people are. 
MR. TURPEN: Sure. 

MR. STEPHENS: Kind of a comparison with those 
against Hertz. 

MR. TURPEN: Be happy to. 

DR. GOOSBY: And the rationale for that. The 
rationale for that. Don't just do it because it's arbitrary, 
less than that and so much gross. 
MR. TURPEN: Right. 

MR. STEPHENS: But what's our rationale for the 
fifty thousand. 

DR. GOOSBY: Right. Consistent. 
MR. STEPHENS: Right. 

DR. GOOSBY: Consistent. That we could use in 
future times — 

MR. TURPEN: I understand. 

DR. GOOSBY: — and what we've used in past time. 
Because if we just keep it "small," and it's not in 
keeping with our past and future positions, should we do it? 
Can we? 

MR. TURPEN: What we will do is we will have this 
meeting at our earliest convenience, and we'll send at least a 
draft summary of it — 



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1 MR. BERNSTEIN: There's one speaker on this, 

2 Mr. Kantoff wanted to say something. 

3 Do you want to say something now? 

4 MR. KANTOFF: If I may. 

5 DR. GOOSBY: And how much cheaper are their rates 

6 than Hertz and Avis and the big boys? How much cheaper are they 

7 really? 

8 MR. TURPEN: Mr. Kantoff, which item are you going 

9 to speak to? 

10 MR. KANTOFF: The ground transportation. The off — 

11 MR. TURPEN: Off-airport rent-a-car? 

12 MR. KANTOFF: Yeah. 

13 MR. TURPEN: You'll have to reopen- the public 

14 hearing to take his testimony, Commissioner. 

15 MR. BERNSTEIN: Hum? 

16 MR. MURPHY: Let's just reopen it. 

17 MR. TURPEN: Reopen the public hearing for his 

18 testimony, and then you can close the public hearing again. 
19 

20 MARTIN KANTOFF 

21 MR. KANTOFF: My name is Martin Kantoff, I represent 

22 the San Francisco Ground Transportation Operators. 

23- MR. TURPEN: I'm sorry, speak into the mic directly 

24 MR. KANTOFF: Okay. 

25 MR. BERNSTEIN: Speak into the mic, please. 
MR. KAN.TOFF: Actually, I didn't intend to speak 



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today because I didn't think that this issue was going to come 
up this quickly. And what I'd like to do is just basically 
share some information with you that I've acquired over the past 
few months. 

I had the opportunity of traveling to Washington, 
D.C., and meeting with members of Congress, the Senate, and the 
Department of Transportation on this very issue. And quite 
frankly, it's a can of worms that nobody has wanted to open up 
as yet. 

Everyone is studying the issue. There are people on 
both sides of the issue. The Department of Transportation has 
just issued a summary of their findings which seems to come down 
directly into the middle of the situation. 

As you know, around the country, there is 
litigation, there is appeals, there's arguments for, there's 
arguments against. 

The last time we had a meeting concerning this, we 
were talking about the rates for the shuttle bus service. At 
that time it went from 35 cents to 70 cents, and it was my 
understanding there would be a consideration of a dollar come 
January 1st. And now, four, five months later, we've abandoned 
the fee system and are immediately going into a discussion of 
percentage of gross. 

I can assure you, despite what you've heard here 
today, although there are two or three companies which are 
large — such as Alamo and Thrifty — the basic off-airport 



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car rental company is a small mom and pop operation. These 
people basically serve the tourists that come into 
San Francisco. And they serve them with lower rates, because 
they have neither the fleet, the advertising, or the facilities 
that Hertz or Avis would have. 

Although Hertz and Avis and companies like that 
claim that they're losing market share, and of course the "off" 
car rental companies have risen to 22 percent. But what that 
means conversely is that four companies dominate 78 percent of 
the industry. 

If I had 78 percent market share of any industry, I 
would be very content. 

The argument that was proposed here today, that 
Hertz has never threatened to leave the airport, is erroneous. 
I was told that by Secretary Skinner of the Department of 
Transportation. I was told it by other members of the 
Department of Transportation. It's been widely circulated. 

What is the purpose of this fee? Basically in 
Hertz* view, in my opinion, to drive out or down competition. 
And I think that you should seriously consider this. 

Thank you very much. 

MS. DUVALL: Mr. Kantoff, who do you represent? 

THE WITNESS: The San Francisco Ground 
Transportation Operators. It's an organization of motels, 
hotels, ground transportation. 

That's another issue — I'm glad you asked me 



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that — because in discussing it with one of the lobbyists for 
the airports in Washington, she said to me "After we're done 
with the car rental companies, then we'll look at the motel and 
hotel situation." 

I don't understand how you differentiate between car 
rental companies in this case and hotels. Hilton is on the 
airport. Would you then go after the other hotels to get a 
percentage of their gross? It's a real can of worms. I think 
you really should consider it. 
Thank you. 

MS. DUVALL: Thank you. 

Mr. Turpen, I'd like to be sure that we have as 
complete as possible a list of off-airport operators and 
whatever estimates of their relative measure of their size. It 
may or may not be revenue. 

MR. TURPEN: On the rent-a-cars, you mean. 
MS. DUVALL: Yeah. 

DR. GOOSBY: How much they're charging, too. 
MS. DUVALL: Yeah. 
MR. TURPEN: I understand. 

MS. DUVALL: Plus the fee structure, the best we can 
determine. 

Also, I am assuming that all off-airport operators 
are currently contracted with the Airport for ground 
transportation access. That that is the universe of operators. 
That that is the universe of operators that we're talking about. 



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Is that right? 

MR. TURPEN: I think there is one that is not. The 
remainder are. 

DR. GOOSBY: They have to pay that per-pass. 

MR. TURPEN: That is correct, sir. 

MS. DUVALL: I'm sorry, you need to be a little more 
specific. There's one who doesn't access the airport? 

MR. TURPEN: With the exception of one, all the 
others have executed an operating permit to come to the airport 
and pay the per-trip charge, which the Commission authorized 
earlier this year. 

MS. DUVALL: Then they all have their transponders 
and all the rest of that stuff. 

MR. TURPEN: That is correct. That is correct. 

MS. DUVALL: Okay. Thanks. 

MR. TURPEN: I suggest we close the public hearing 
at this point, Mr. President, and then reopen a new one on cargo 
rental rates. 

MR. BERNSTEIN: Fine. 

MR. TURPEN: Ladies and gentlemen, the Commission 
will be considering the matter of proposed increase in cargo 
rental rates at this time. 

Do we have anybody to speak to that one, 
Commissioner? 

Is there anyone to speak to the cargo rental rate 
increase? 



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I would then declare the public hearing closed, and 
the Staff will come back to the Commission at its next meeting 
with the appropriate resolution. 

MR. BERNSTEIN: Fine. The meeting is closed. 

MR. TDRPEN: Thanks. Short Executive Session. 

Ladies and gentlemen, the regular meeting of the 
Airports Commission is concluded. The Commission will be going 
into Executive Session to confer with the Airport's General 
Counsel. I ask at this time at the public excuse itself. Thank 
you for your attendance. 

(Meeting adjourned at 10:27 a.m.) 

0O0 



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STATE OF CALIFORNIA 
COUNTY OF ALAMEDA 



) SS. 



I, the undersigned, a Notary Public of the State 
of California, hereby certify that foregoing Airports Commission 
Meeting and Public Hearings were held at the time and place 
herein stated; that the proceedings of said Meeting and 
Public Hearings were reported by me, a Certified Shorthand 
Reporter and disinterested person, and were thereafter 
transcribed under my direction into typewriting; that the 
foregoing is a full, complete and true record of said Meeting 
and Public Hearings. 

I further certify that I am not of counsel or 
attorney for either or any of the parties in the foregoing 
Meeting and Public Hearings, nor am I in any way interested in 
the outcome of the causes named herein. 

IN WITNESS WHEREOF, I have hereunto set my hand 
and affixed my seal this 23rd day of June 1989. 



CFP'O •-•'.. SEA- 

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CHARLOTTE CERVANTEZ 

CSR #4486 - Notary Public 

State of California 



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« SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS Di 

SAN ^^ 

• ;. ..-.I ii--. > it- ^ < >- v 



MINUTES 

SPECIAL MEETING 
4,+ JUNE 27, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

June 27, 1989 
Special Meeting 



CALENDAR 
SECTION 



B. 
C. 



D. 
E. 



AGENDA 
ITEM 



TITLE 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 
June 6, 1989 



ITEMS INTIATED BY COMMISSIONERS: 

PENDING LEGISLATION: 

Resolution Opposing AB 1506 



RESOLUTION 
NUMBER 



89-0116 



PAGE 



89-0117 



F. 



89- 


-0118 


89- 


-0119 


89- 


-0120 


89- 


-0121 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Award of Lease: North Terminal 
Hub Principal Concession Lease for 
Retail Merchandise Sales 

Award of North Terminal Bookstore 
Lease 

Award of Garage Taxi Staging Area 
Mobi le Catering Leases 



Award of Contract No. 1907B: 
Waterproofing North Terminal 
Roof 89-0122 

Award of Contract No. 1946: 
International Terminal Carpet 
Replacement 89-0123 

Award of Contract No. 1979: 
Parking Lot 'D' Resurfacing and 
Extension 89-0124 

Authorization to Receive Bids: 
Public Lockers and Over-the- 
Counter Baggage Storage 89- 

Increase in Rental Rates for 
Permitted Cargo Space 89- 



0125 
0126 



4-5 
5 



5-6 



6-7 

7 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

10. Resolution to Add Bar Facility 
to Boarding Area 'A' and Expand 
Cafe Expresso in Boarding Area 

'F' 89-0127 7 

11. Travel /Training for Fiscal Year 

1989-90 89-0128 8 



PUBLIC HEARING: 

12. Fiscal Year 1989/90 Rates and 

Charges 9 

NEW BUSINESS: 

Retirement Resolution: 

James Ripp 89-0129 9 

CORRESPONDENCE: 

Letter from Walter Johnson, 

AFL-CI0, re Eastern Airlines 9-10 

Host Lease 10 

CLOSED SESSSION: 3 



ADJOURNMENT TO GO INTO CLOSED 

SESSION: 10 



MinntPS. Snprial Meetina. June 27. 1989. Paqe 2 



Minutes 

of the 

Airports Commission Meeting 

June 27, 1989 
Special Meeting 



CALL TO ORDER: 

The special meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Sharon B. Duval 1 

Patrick A. Murphy arrived after roll 
call at 9:02 AM 

Absent: Donald R. Stephens 



K. CLOSED SESSION: 

The meeting recessed at 9:02 AM to go into closed session and reconvened 
at 9:07 AM. 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of June 6, 1989 were adopted by order 
of the Commission President. 

No. 89-0116 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



Minutes, Special Meeting, June 27, 1989, Page 3 



E. PENDING LEGISLATION: 

Item No. 1 was adopted unanimously. 

1 . Resolution Opposing AB 1506 

No. 89-0117 

Mr. Lou Turpen, Airport Director, explained that the particular 
concern of this bill is the limitation it will impose on an airports 
ability to require a charter party to have a permit or to operate 
with any degree of constraint other than the broad constraint that 
might be contained in the legislation. This will erode the 
capability of an airport proprietor to operate its airport and set 
reasonable rules and regulations which are in the best interest of 
the facility. He said that the airport is a public utility and there 
are significant security concerns. To have companies operating on 
the Airport outside of a framework that has been established by the 
Commission is inappropriate. 

Mr. Turpen said that if the Commission agrees he will transmit the 
Commission's position to our legislative lobbyist in Sacramento as 
well as to appropriate members of the State Assembly and Senate. 

Commissioner Goosby added that as this legislation would also 
interfere with an airports right to charge a fee for these permits, 
it will effect our revenue as well. 

Mr. Turpen agreed. This bill goes a little further than the Alamo 
bill but it is the same type of revenue argument. He said that he 
was concerned that since we won't be able to permit operators, we 
won't know who they are. He told the Commission that anyone taking 
any type of public conveyance from the Airport feels that the 
Airport, in some way, shape or form, is guaranteeing or ratifying 
that conveyance. He said that once a proprietor's ability to make 
rules and regulations, which are in the public interest, is eroded 
there will be real problems. 

Commissioner Murhpy commented that if a passenger is injured by one 
of these vehicles, that passenger will not only assume that that 
operator had the approval of the responsible governmental body but 
they will assume that the responsible governmental body will be 
answerable in tort for the injuries. 

Mr. Turpen said that the City's lobbyist will argue our case for us. 
Staff has also made several calls on the Alamo bill and will make 
cal Is on this bill as wel 1 . 



F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 

The following items were adopted unanimously. 

2. Award of Lease: 

North Terminal Hub Principal Concession Lease for Retail Merchandise 
Sales 

No. 89-0118 Resolution awarding the North Terminal 

Hub Principal Concession Lease for 
Retail Merchandies Sales to Host 
International . 

Minutes, Special Meeting, June 27, 1989, Page 4 



Mr. Turpen said that this space was previously controlled by Duty 
Free Shoppers. The bid, which was won by Host International, was 
slightly in excess of $1 . 3-mi 1 1 ion. There are three locations, with 
the largest at 3,000 square feet. 



3. Award of North Terminal Bookstore Lease 

No. 89-0119 Resolution awarding the North Terminal 

Bookstore Lease to Host International. 



4. Award of Garage Taxi Staging Area Mobile Catering Leases 

No. 89-0120 Two resolution awarding the Garage 

No. 89-0121 Taxi Staging Area Mobile Catering 

Leases to Acosta Catering. 

Mr. Turpen explained that two shifts are required to provide catering 
services to the garage taxi staging area. Mr. Rudy Acosta was the 
high bidder on both the day and evening shifts. 



5. Award of Contract No. 1907B: 

Waterproofing North Terminal Roof 

No. 89-0122 Resolution awarding Contract No. 

1907B, Waterproofing North Terminal 
Roof, to Echo West, Inc., for 
$976,404.00. 

Mr. Turpen' said that this contract provides for remembraning the 
North Terminal roof, which has been the subject of considerable 
debate, several studies, litigation and a settlement claim. 

Commissioner Goosby asked if the Airport won that litigation. 

Mr. Don Garibaldi, Airports General Counsel, responded that the 
Airport will recover $230,000.00. 

Mr. Turpen said that the basic issue is that we have a physical 
problem in the North Terminal and this is intended to address that 
problem. The membrane will be removed, the cracks will be repaired, 
and the membrane will be reinstalled to waterproof and seal the roof. 

Commissioner Bernstein asked how much the original roof cost. 

Mr. Jason Yuen, Administrator, Bureau of Planning and Construction, 
responded that the original roof was between $500,000 and $600,000. 
We recovered almost half the cost and we have had the roof for ten 
years. He said that it was supposed to be a 15 year roof and was 
guaranteed for five years. 



6. Award of Contract No. 1946: 



International Terminal Carpet Replacement 

No. 89-0123 Resolution awarding Contract No. 1946 

to American Contractors Interiors, 
Inc. in the amount of $490,000.00. 



Minutes, Special Meeting, June 27, 1989, Page 5 



Mr. Turpen said that the International Terminal has carpet in four 
prime locations, namely the North/South Connectors, Boarding Area 'D' 
and the arrivals area and lobby outside of Customs. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations and 
Maintenance, told the Commission that this contract will replace all 
of the carpet on the upper level, and inside and outside of the 
Customs arrival area. 

Commissioner Duval 1 asked how much life we got out of the current 
carpet. 

Mr. Bouey responded that it has been in place for six years. 

Commissioner Goosby asked what the problems have been. 

Mr. Turpen responded that this carpet needs to be replaced on the 
natural but it has never met our expectations with respect to stain 
resistance and cleaning, even after all of the testing done on it. 

Mr. Bouey added that the new carpet will have the identical 
construction and content of fabric as the North Terminal carpet. He 
said that we have been very lucky with that carpet and it has lasted 
almost 10 years. 

Mr. Turpen told the Commission that the carpet in the International 
Terminal was tested thoroughly before it was purchased. The problems 
incurred were due more to color and expanse than anything else. It 
tested beautifully on stain removal. He said that everything showed 
up on the carpet in the International Terminal and cleaning 
frequencies were far greater there than in any other part of the 
Airport. 

Commissioner Goosby asked if the old carpet becomes the property of 
the contractor. 

Mr. Bouey responded that it does. He added that this carpet is not 
in very good shape and will have no resale value. 



Award of Contract No. 1979: 

Parking Lot 'D' Resurfacing and Extension 

No. 89-0124 Resolution awarding Contract No. 1979 

to O'Grady Paving, Inc. in the amount 
of $768,500.00. 



Authorization to Receive Bids: 

Public Lockers and Over-the-Counter Baggage Storage 

No. 89-0125 

Commissioner Goosby said that he received a letter from Morris 
Technologies suggesting that the number of lockers be reduced to 200 
lockers because of their electronic equipment. 

Mr. Turpen said that they are welcome to bid if they wish, however, 
he did not feel it appropriate to tailor the bid specifications. 

Commissioner Duvall agreed with Mr. Turpen. She asked if staff has 
seen a test of this and if it is a viable application. 

Minutes, Special Meeting, June 27, 1989, Page 6 



Ms. Angela Gittens, Deputy Director for Business and Finance, 
responded that staff has seen a prototype. She said that it seems to 
work fine and felt it was an interesting concept. The French railway 
stations currently use this system. She said that although it is not 
in use in the U.S., this company is making proposals to several U.S. 
airports which don't require a bidding process. She said that Logan 
Airport looks like it might be their first prospect. 

Ms. Gittens said that this is not something that we need to jump 
into. Morris Technologies, the company that manufactures this 
equipment, has been trying to vend their system to locker companies 
but they have not had any takers. 

Commissioner Duvall asked if there was anything in our specifications 
that would disallow this technology from being applied. 

Ms. Gittens responded that our previous specifications, which would 
have prevented Morris Technologies from bidding, were amended so that 
they can now bid on this lease. 

Commissioner Duvall said that she did not understand the difference. 
Staff specified 444 lockers and they say they can accomplish the same 
revenue stream with 250. She asked Ms. Gittens for an explanation. 

Ms. Gittens said that she could not explain it. She said that the 
company claims that their findings have been that there are more 
rotations per locker with this system. She said that the company 
claims that because of the confidence the public has in it, useage is 
higher and for shorter periods of time. She said that the rate 
structure can be tailored to short time periods. Because there is 
higher utilization per locker, not as many lockers are needed. 

Commissioner Duvall assumed that because of the increased per unit 
cost of the- sophi sticated electonics, fewer units will be installed 
in order to be competitive with the straight mechanical application. 



9. Increase in Rental Rates for Permitted Cargo Space 

No. 89-0126 

Mr. Turpen reminded the Commission that it held a public hearing on 
these rates at the last meeting. This item requests approval for the 
increase. He said that there were no negative comments at the public 
hearing, nor were any received in the interim. 

Commissioner Goosby was impressed by the fact that this increase has 
not been protested. He suggested that they could have been raised a 
1 i ttle higher. 



G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

10. Resolution to Add Bar Facility to Boarding Area 'A' and Expand Cafe 
Espresso in Boarding Area 'F' 

No. 89-0127 



Minutes, Special Meeting, June 27, 1989, Page 7 



Travel/Training for Fiscal Year 1989-90 

No. 89-0128 

Commissioner Bernstein asked if each of these conferences will be 
attended by a staff member. 

Mr. Turpen explained that under the City's procedure for travel a 
department is required to obtain advance approval for all trips. 
Based on the Commission's prior direction to staff, a complete list 
of anticipated travel is submitted at one time for the fiscal year. 

Commissioner Duvall asked if Mr. Turpen had information on each of 
these events. 

Mr. Turpen responded that he did not. He said that staff could 
return to the Commission for each trip rather than request a blanket 
approval. He said that he knew that the FAA will hold workshops and 
seminars on security and emergency management at some point during 
the year but he did not have any information relative to a date or a 
place at this time. He added that site visits on concessions are 
listed for eight airports yet staff has not made more than two or 
three in the last year. 

Mr. Turpen told the Commission that only about 257„ of the trips 
listed are actually taken. This is a wish list which allows staff 
the latitude to pick and choose appropriate trips. He said that this 
process is the easiest way to handle this item but he would be happy 
to follow any other procedure the Commission wished. He said that 
with this procedure he does not have to worry about getting the 
necessary approvals in time to take a trip. He added that there 
isn't enough money in the budget to take all of these trips. He said 
that a couple of trips to Washington, D.C. have been thrown in in the 
event that a member of staff should have to go back to testify or 
meet with members of Congress. He explained that if the Airport 
received a call today requesting that a member of staff appear in 
Washington at the end of the week, a special meeting would have to be 
set up in order to obtain Commission approval, or, the trip would 
have to be delayed two weeks until approval could be obtained at the 
next meeting. This is not a problem at other airports. He felt that 
it made good sense from an administrative standpoint not to have to 
return to the Commission for each trip. Staff tried that process and 
found it to be particularly cumbersome and ineffective. 

Commissioner Murphy said that he was persuaded completely and did not 
want travel presented on an item-by-item basis. He said that if the 
Commission has confidence in the Director and staff to handle things 
properly and not allow any abuses, that should be the end. of it. 

Commissioner Goosby thought that it would be a good idea for 
Commissioners to attend some of these conferences. It would provide 
members with a view of what is happening in the industry. 

Mr. Turpen said that in the past the Commission had expressed an 
interest in attending AOCI ' s annual meeting. This year it will be 
held in Houston in October. Commissioners should review the list and 
notify him of any conferences of special interest. 

Commissioner Bernstein asked about the Art Exibition meetings. 

Mr. Turpen explained that some of the trips dealing with the Art 
Exhibition Program are actually set up to go and collect materials 
and bring them back for display at the Airport. 



Minutes, Special Meeting, June 27, 1989, Page 8 



H. PUBLIC HEARING: 

The public hearing was convened at 9:35 AM and adjourned at 9:38 AM, there 
being no public comments. 

12. Fiscal Year 1989/90 Rates and Charges 

Mr. Turpen called the Commission's attention to page 2 of the staff 
memo which shows the rates and charges. Landing fees and terminal 
rentals rates will be going down. Airline contribution to the 
Airport will be going down. He said that we are down almost half of 
the airline contribution that existed in 1981 and almost half of the 
landing fees. 

Commissioner Goosby said that the very fact that the airlines are not 
present at this meeting indicates that they endorse these rates and 
charges. He said that this shows good management on the part of 
staff. He did not feel that the public was aware of how effectively 
this Airport is being run. 

Mr. Turpen said that staff will return at the July 18 Commission 
meeting with a resolution to approve these rates and charges. 



I. NEW BUSINESS: 

Mr. Turpen introduced a resolution commending Jim Ripp, Manager of 
Traveler's Aide at SFO for the past 10 years. He said that Mr. Ripp is 
very dedicated and completely supportive of the Airports Commission, 
Airport staff and SFO. His volunteers do an outstanding job. 

Commissioner Bernstein noted that this is one of the unsung jobs performed 
on a voluntary basis. He said that Mr. Ripp has been with Traveler's Aid 
for 10 years and that organization provides a great service to the 
traveling public. This is the sort of service that makes us all feel a 
little better. He said that he is familiar with some of the people 
associated with Traveler's Aid and their dedication. 

Commissioner Bernstein said that Mr. Ripp not only has the thanks of the 
Airport but the thanks of the people of the City and County of San 
Franci sco as wel 1 . 

The resolution was adopted unanimously. 

No. 89-0128 



J. CORRESPONDENCE: 

Mr. Turpen remarked on a June 22, 1989 letter from Walter Johnson of the 
AFL-CIO regarding Eastern Airlines proposed July 2 re-start of operations 
at SFO. He said that the letter makes several requests which are clearly 
outside of the Commission's and Airport's jurisdiction. The Airport is 
preempted by the FAA in these requests. 



Minnfoc Qnorial Moofinn lnno 7 7 1 QRQ Panp Q 



Commissioner Bernstein commented that the Commission and the Airport are 
100% behind labor, however, the Commission and the Airport operate under 
limitations. SFO cannot refuse Eastern the right to land here and he 
believed that Mr. Johnson knew that. 

Mr. Turpen told the Commission that a strike/demonstration permit has not 
yet been requested. He said that if there is a demonstration on Sunday, 
staff will be prepared to deal with it. 



Commissioner Goosby commented that Host has outbid its competitors on the 
last couple of bids by tremendous margins. They are obviously very 
competitive and it will be difficult to outbid them when their lease is up 
in 1994. He said that to obtain a voluntary 36% minority/women participa- 
tion would be an obvious advantage for the City. If the lease is bid 
terminal by terminal, either Host, Duty Free or Dobbs will receive the 
awards. The leases will certainly not go to small/local entrepreneurs 
unless they are bid concession by concession. 



L. ADJOURNMENT TO GO INTO CLOSED SESSION: 



There being no further calendared business before the Commission the 
meeting adjourned at 9:43 AM in order to go into closed session. 



■ J^an Caramatti 
Commission Secretary 




SAN FRANCISCO 
AIRPORTS COMMISSION 




AUG IB 13?'* 



MINUTES 



JULY 18, I 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

July 18, 1989 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: ■ 

B. ROLL CALL: ■ 



ADOPTION OF MINUTES: 

Special Meeting of 

June 27, 1989 89-0130 



DIRECTOR'S REPORTS: 

Associated Limousine Service 
and ' a « i c a b Industry - Back- 
ground and Re:c~mendaticns 

Report on AB 2491 , AB 1506 and 
Sheriff's Charter Amendment 



ITEMS INITIATED BY COMMISSIONERS: 
Permits for Van/Shuttle Services 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Request for Air Train, Inc. for 
Variance from Noise Abatement 
Regulations 89-0131 

Authorization for Pre-RFP 

Conference - Agreement for 

Operator Assisted Long Distance 

Service from Pacific Bell Public 

Pay Telephones 89-0132 

Approval of Contract No. 2174: 
Changeable Message Sign 89-0133 

Consent to Assignment of Duty/ 
Free /I "-Bond Lease from Allders 
International, Ltd. to Allders 
International ISA, Inc. 

Rejection :' t 1 1 Bids and 
Authcri: I I Re-Bid Contract 
No. 2 1 € 3 : Airport Fuel System 
Repai r and Related Work - 
Fi 1989-90 89- 



Award of Contract Nc. 1559C: 

Tax i way ' R ' Repai r I 

Reconstruction 89-0135 

Awa-d of Contract No. 2044R: 
International & North Terminal 
Underground Tanks Replacement 89-0136 



G. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

10. Adoption of Fiscal Year 1989/90 

Rates and Charges 89-0137 5 

11. Shuttle Bus Service Agreement 

No. 68252, Modification No. 7 89-0138 5 

12. The Parry Contract 89-0139 5 

13. Authorization to Conduct Pre- 
Bid Conference for International 
Terminal and North Terminal 

Cigarette Vending Lease 89-0140 6 

14. Design Review Approval: 
California Products Shop - 

North Terminal 89-0141 6 

15. Design App-'ov^' of International 
Terminal Principal Concession 

Retail Pemises 89-0142 6 

16. Award of Contract No. 2067 

Timber Pi le Repair 89-0143 6 

17. Resolution Ratifying Personnel 

Actions 89-0144 6 



H. PUBLIC HEARING: 

18. Continuation of Public Hearing 
on Proposed Privilege Fees for 
Off-Airport Rental Car Companies 6 



I. NEW BUSINESS: 6 

J. CORRESPONDENCE: 7 



L. ADJOURNMENT TO GO INTO CLOSED 

SESSION: 



Minutes. July 18, 1989, Page 2 



Mi nutes 

of the 

Airports Commission Meeting 

July 18, 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of June 27, 1989 were adopted by order 

of the Commission- President 

No. 89-0130 



A court reporter's transcript of this meeting is attached. 



D. DIRECTOR'S REPORTS: 

1 . Associated Limousine Service and Taxicab Industry - Background and 

Recommendations 

This package includes comments from 
Associated Limousine, the taxicab 
industry and Airport staff on the 
existing limousine operation. 



2. Report on AB 2491 , AB 1506 and Sheriff's Charter Amendment - Verbal 
Report 



Minutes, July 18, 1989, Page 3 



E. ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Items 3 through 5 were adopted unanimously. 

3. Request for Air Train, Inc. For Variance from Noise Abatement 
Regulations 



No. 89-0131 



Resolution directing Director of 
Airports to designate an independent 
hearing officer to hear and make 
findings with respect to Air Train, 
Inc.'s request for a variance from 
Commission's Noise Abatement 
Regulation. 



4. Authorization for Pre-RFP Conference - Agreement for Operator 
Assisted Long Distance Service from Pacific Bell Public Pay 
Telephones 

No. 89-0132 



Approval of Contract 2174: 
Changeable Message Si gr 

No. 89-0133' 



Resolution to approve the advertising 
of bids to install two changeable 
message signs, with safety walks, 
rails and lighting, over the road 
approaching the Terminals. The 
messages will be controlled from a 
remote location. Estimated total 
project cost $219,000. 



Item No. 6 was put over to the August 1, 1989 meeting. 

6. Consent to Assignment of Duty Free/In-Bond Lease from Allders 
International, Ltd. toAllders International USA, Inc. 



Items 7 through 9 were adopted unanimously. 

7. Rejection of All Bids and 

Authorization to Re-Bid Contract No. 2163: 

Airport Fuel System Repair and Rela'ed Work Year 1989-1990 



No. 89-0134 



Resolution rejecting all bids and 
authorizing the Director to re-bid for 
Contract No. 2163 Airport Fuel System 
Repair and Related Work Year 1989-1990. 



Minutes, July 18, 1989, Page 4 



8. Award of Contract No. 1559C: 

Taxiway 'R' Repair & Reconstruction 

No. 89-0135 Resolution awarding Contract No. 1559C 

to O'Grady Paving, Inc. in the amount 
of $1 ,088,625.00. 



9. Award of Contract No. 2044R: 



International and North Terminal Underground Tanks Replacement 

No. 89-0136 Resolution awarding Contract No. 2044R 

to UNIC0N Corp., in the amount of 
$395,000.00. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

Items 10 through 17 were adopted unanimously. 

10. Adoption of Fiscal Year 1989/90 Rates and Charges 

No. 89-0137 Resolution adopting (1) Commercial and 

general aviation landing fees and (2) 
Terminal rental rates for fiscal year 
1989/90 and authorizing a $7,500,000 
supplemental appropriation from 
unappropriated surplus to the 
operating fund. 



1 1 . Shuttle Bus Service Agreement No. 68252, Modification #7 

No. 89-0138 The Airports Commission is being 

presented with a Resolution adjusting 
both the 1989 hourly rates and the 
1988 unanticipated insurance premium 
reimbursements for our Shuttle Bus 
service contract operated by SFO 
Shuttle Bus Company. The Resolution 
adjusts the 1989 hourly rates 
effective January 1, 1989, from 
$30.5558 to $30.5001 per basic hour 
and from $21 .2100 to 21 .15-19 per 
incremental hour; reimbursement for 
unanticipated 1988 insurance premium 
payments is adjusted from $17,968.00 
to $9,179.27. 



12 . The Parry Contract 

No. 89-0139 Contract for the Parry Company to 

produce four noise impact area 
contours to be used on the Quarterly 
Report and at the Airport Roundtable. 
The contract also provides for 
appearances by representatives of the 
Parry Company to substantiate the 
noise contours ($30,000). 
Minutes , July 18, 1989, Page 5 



1 3. Authorization to Conduct Pre-Bid Conference for International 

Terminal and North Terminal Cigarette Vending Lease 

No. 89-0140 



1 4 . Design Review Approval: 

California Products Shop - North Termina' 



No. 89-0141 



Resolution approving the schematic 
designs for the remodeling of the 
California Products Shop in the North 
Terminal Building. 



15 



Design Approval of International Terminal Principal Concession 
Retail Premises 



No. 89-0142 



Resolution approving the design for 
the mid-term renovation of the 
International Terminal Principal 
Concession Retail premises. 



16. Award of Contract No. 2067 
Timber Pile Repai r 

No. 89-0143 



Resolution awarding Contract No. 2067 
to DRSML Divers J.V., in the amount of 
S201 ,359.00. 



1 7 . Resolution Ratifying Personnel Actions 



No. 89-0144 



Resolution, in accordance with the 
requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



H. PUBLIC HEARING: 

The public hearing was convened at 9:45 AM and adjourned at 10:15 AM, 
there being no further public comemnts. 

18. Continuation of Public Hearing on Proposed Privilege Fees for 
Off-Airport Rental Ca- - Companies 



I. NEW BUSINESS: 

There was no discussion bv the '..■ 



Minutes, July 18. 1989, Page 6 



3. CORRESPONDENCE: 

There was no d i s c us s i or by the Commission. 

* * * 

L. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:15 AM to go into closed session. 



/J 




^ciZvL 



Jean Caramatti 
Cpmmission Secretary 



'■' ■ te- , Julv 18. '96?. Page 7 



" SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

SEP 1 S I 

SAN t-KnHt,>«;0 



MINUTES 



AUGUST 15, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commi ssion 

August 15, 1989 



B. 



AGENDA 
ITEM 



TITLE 



CALL TO ORDER: 



ROLL CALL: 



RESOLUTION 
NUMBER 



PAGE 



D. 
E. 



ADOPTION OF MINUTES: 

Regular meeting of 

July 18, 1989 89-0147 



ANNOUNCEMENT BY SECRETARY; 



SPECIAL ITEM: 

Commendation - Jefferson Ng 
Recipient of William B. O'Brien 
Perpetual A^a-a for Employee 
'Excellence 89-0148 



3-4 



DIRECTOR'S REPORT: 

Status Report on Valet Parking 



4-5 



ITEMS INITIATED By COMMISSIONERS: 

Letter from Ralph Chinn re 
AirTrain's Request for Variance 

Reply to Associated Limousine's 
August 7 Letter 



H. 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Application of AirTrain, Inc. 
for Variance from Noise Abatement 
Regulation 

Resolution Accepting Nomination 

of Greiner, Inc. as Consultant 

for Runway Reconfiguration 

Study 89-0149 



6-7 



5. Consent to Assignment of Duty 
Free/In-Bond Lease from Allders 
International, Ltd., to Allders 

International USA, Inc. 89-0150 7-8 

6. Assignment of International 
Terminal Candy Shop Lease to 

Duty Free Shoppers, Ltd. 89-0151 8-9 

7. Recommendation to Modify 

Airport Police Retirement Plan 89-0152 9 

8. Award of Contract No. 1952: 
Runway 28L Overlay and 

Reconstruction 89-0153 9 

9. Candy Mann - Trial See's Candy 

Cart 89-0154 9-10 

0. Airport Advertisement 10-11 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

11. Resolution Modifying Lease and 
Use Agreement with Northwest 
Airlines, Inc. - Modification 

No. 4 89-0155 11 

12. Bid Call - Contract No. 1889: 
North Terminal Carpet Replace- 
ment Phase III 89-0156 12 

13. Duty Free/In-Bond Concession - 

Design Approval 89-0157 12 

14. North Terminal Hub Principal 

Concession - Design Approval 89-0158 12 

15. Close-Out Contract No. 1464: 
Boarding Area 'B' Apron 

Extension 89-0159 12 

16. Retirement: William Kelly 89-0160 12 

17. Approval of Claims Settlements 89-0161 12 

18. Resolution Rarifying Personnel 

Actions 89-0162 12 



NEW BUSINESS: 
Master Plan 12-15 

CORRESPONDENCE: 15 



M. ADJOURNMENT TO GO INTO CLOSED 

SESSION: 15 



Minutes 

of the 

Airports Commission Meeting 

August 15, 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: 



Morris Bernstein, President 
Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of July 18, 1989 were adopted by order 
of the Commission President. 

No. 89-0147 



ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti, 
Commission Secretary announced 
unanimous adoption of resolution no. 
89-0146 regarding SFO Airporter 
judgment payment at the closed session 
of July 18, 1989. 



SPECIAL ITEM: 

The following item was adopted unanimously. 

1 . Commendation - Jefferson Nq 

No. 89-0148 Resolution of Commendation for 

Jefferson Ng , 1988 Recipient of the 
William B. O'Brien Perpetual Award for 
Employee Excellence. 

Mr. Lou Turpen, Airport Directc , introduced Officer Jeff Ng as the 



Minutes, August 15, 1989, Page 3 



recipient of the William R. O'Brien Perpetual Award for Employee 
Excellence. He explained that this award was created in recognition 
of Bill O'Brien's outstanding contributions to the Airpor f over many 
years. Each year, in commemoration of Mr. O'Brien's outstanding 
service, an employee demonstrating the same standard of excellence is 
recognized. 

Mr. Turpen said that Officer Ng has repeatedly demonstrated his 
willingness to take that extra step. He has shown competence, 
compassion, professionalism on the job, and concern and commitment 
for the training and development of other officers thereby setting 
the highest standards possible for both the San Francisco Airport 
Police and peace officers in general. Officer Ng has had a diverse 
range of services beyond the call of duty, serving not only as patrol 
officer but functioning as FAA liaison, bomb technician and field 
training officer for the past 13 years. He has received numerous 
commendations for outstanding performance in his field. These 
include risking his own safety in disposing of a bomb device from a 
locker, receiving a commendation for his exceptional statistics on 
the midnight shift which demonstrate self-motivated, self-initiated 
crime prevention, uncovering an auto burglary and arrest of five 
suspects at the United parking lot, and he was part of a collective 
effort in the arrest of two armed robbers, demonstrating quick 
response and sound professional tactics. 

Mr. Turpen said that he was very proud to present Officer Ng as the 
recipient of this award. 

Commissioner Bernstein congratulated Officer Ng on behalf of the 
Commission. He said that it was his type of motivation that makes 
San Francisco International Airport what it is. He thanked Officer 
Ng for his outstanding efforts. 

Officer Ng thanked the Commission for this honor and expressed his 
appreciation at being a part of San Francisco International Airport 
and the Airport Pol ice. 

Mr. Turpen told the Commission that Bill O'Brien passed away about 
three years ago and this was the Airport's way of remembering a 
brilliant engineer and as well as recognizing a level of excellence 
in employees. 

Commissioner Goosby thought that this was a good idea and asked if it 
would be possible to offer a cash award of $50 or $100 as well. 

Mr. Turpen said that he would look into it. 



F. DIRECTOR'S REPORT: 

2. Status Report on Valet Parking 

Mr. Turpen said that this was a follow-up to an earlier Commission 
request to take a look at Valet Parking after the rate increase. He 
said that at this point Valet Parking continues to generate revenue 
to the Airport. The Commission has historically demanded that Valet 
Parking maintain a break-even operation. It was never the 
Commission's intention to subsidize the operation. 

Mr. Turpen said that Valet Parking is currently generating about 
$580,000 a year, with abou* $370,000 in expenses. He said that the 

Minutes, August 15, 1989, Page 4 



operation has experienced a drop in patronage but did not know 
whether that drop was due to the rate increase or whether it was tied 
to Skypark, an in-door parking facility that opened up right off the 
Ai rport . 

Mr. Turpen said that there is a suggestion that there be a further 
rate modification to the rate package which would mean continuing 
with the $25.00 fee for the first day but dropping the daily fee for 
each subsequent day from $25.00 to $20.00. Further, there is a 
suggestion to offer some type of incentive through a rebate or 
frequent parker program. 

Mr. Turpen said that at this point the Valet operation has stabilized 
and is generating revenue. He suggested that staff continue to 
monitor it for the next few months and the Commission can make a 
decision after the first of the year when staff returns with a report 
on Valet's annual numbers. 

Commissioner Goosby asked what Skypark charged. 

Mr. Turpen responded that they charge $10.00 a day. 

Commissioner Duval 1 asked if Valet offers any extended services, such 
as a car wash faci 1 i ty. 

Mr. Turpen responded that it is currently just the basic Valet 
service, however there have been discussions about that possibility 
in the past. 

Commissioner Duvall asked if the Airport decided that it did not want 
to provide those enhanced services. 

Mr. Turpen responded that he thought that at the time that staff had 
provided a list of possible services, Valet patronage had fallen off 
and was not covering its expenses. 

Commissioner Duvall suggested that it might be possible to charge an 
additional fee for those services to enhance the business. 

Mr. Turpen said that staff will return after the first of the year 
and take a look at those additional services based on the annual 
projections . 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Goosby asked Mr. Turpen if he was going to reply to Mr. 
Chinn's letter concerning AirTrain's variance request and his comment that 
the Commission, to date, has not denied a variance request. He said that 
that statement is inaccurate. 

Mr. Turpen agreed that it was not accurate and said that he would respond 
to Mr. Chinn's letter. He said that Evergreen, DHL and Flying Tiger were 
approved. Braniff was denied. Braniff returned to the Commission with a 
request for reconsideration. That request for reconsideration was for a 
60-day variance as opposed to the two-year variance they had originally 
requested. He explained that there are three categories, those that are 
approved, those that are withdrawn anc these that have been denied. Mr. 
Turpen said that out of the six requests for variances, three were 
granted, two airlines withdrew the : r reouests and one request, submitted 
by Braniff, was denied. Braniff subsequent!) returned to the Commission 
with a request for a 6 r -da> variance as opposed to the two-year variance 

Minutes, August 15, 1989, Page 5 



originally submitted. That request was approved. 

Commi ss ione" Bernstein asked Mr. Timothy Treacy, member, San Francisco 
Airport Noise Committee, if he wished to address the Commission. 

Mr. Treacy responded that he was informed by the Director's Office that 
the item was to be put ove r and said that he had no comments. 



Commissioner Goosby asked Mr. Turpen if he had seen the August 7 letter 

from Associated Limousine in which Associated claims that the Airport 

granted permission to two vans to carry passengers to San Francisco in 

violation of an exclusive contract that Associated Limousine has with the 
Airport. 

Mr. Turpen said that he has not seen the letter in question. 

Commissioner Goosby said that he wanted to see a copy of Mr. Turpen's 
reply to Associated. He said that it was his understanding that there 
have been no exclusive contracts awarded since the problem with 
Airporter. He said that if that is incorrect then he would be interested 
in knowing the details surrounding the decision to grant permission to 
those vans. 

Mr. Turpen noted that Commissioner Goosby's copy of the Associated 
Limousine letter did not indicate that he was to receive a copy. He said 
that he would look into the matter. 



H. ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 

The following item was put over. 

3. Application of AirTrain, Inc. for Variance from Noise Abatement 
Regulation 

Resolution granting application of 
AirTrain, Inc. for variance from 
Airports Commission's Noise Abatement 
Regulation. 

Mr. Turpen explained to the Commission that the AirTrain variance is 
being put over in order to address some serious questions that have 
come up with regard to their request. He said that he would like to 
give AirTrain an expeditious review of their request but the 
questions created such uncertainty that he could not ask the 
Commission to make a decision today. The questions surrounding the 
request include FAA certification and proper certificates. AirTrain 
has been advised that their item would not be heard at this meeting 
and that they would not be able to begin operation on August 20, 
1989, per their contract with the U.S. Postal Service. Staff has 
given them some options in that regard and further told them that 
this matter would not be before the Commission until September 5. 

Commissioner Duval 1 asked what effect this would have on mail 
services . 

Mr. Turpen said that apparently a lawsuit has been filed Involving 
Evergreen, the Postal Service and AirTrain. AirTrain has had to 
obtain certain certifications fron the FAA which have not been 

Minutes, August 15, 1989, Page 6 



timely. AirTrain suggested a substitute operator but the substitute 
operator would have to obtain a variance as well and they have not 
applied for one. He said that he did not know if Evergreen's 
contract with the Post Office will be extended until such time as 
AirTrain's situation is straigthened out, or, if AirTrain will bring 
in another type of aircraft to comply with our noise regulation. In 
that event, all that would be needed is an operating permit. 

Mr. Turpen said that this item will be rescheduled for September 5 if 
everything falls into place. He told the Commission that staff made 
a suggestion to the Postal Service that future contracts should 
require the contractor to be compliant with the noise regulations of 
the airports at which they will operate. 



The following items were adopted unanimously. 

4. Resolution Accepting Nomination of Greiner, Inc. as Consultant for 
Runway Reconfiguration Study 

No. 89-0149 Selection Committee has considered the 

proposals from three pre-qual if ied 
firms, interviewed the team members, 
and unanimously recommended that 
Greiner, Inc. be selected to receive 
the contract. 

Mr. Turpen said that the ALUC and the Roundtable have asked for an 
evaluation of the possibility of reducing Airport noise through some 
modification, reorientation or reconfiguration of the Airport runway 
system. The Commission agreed to that request and directed staff to 
proceed with the selection of a consultant. Staff went through a 
process and the Selection Committee consisting of Duke Briscoe, 
Deputy Director of Operations, Roger Chinn, Chairman of the Airport 
Community Roundtable, John Costas, Bureau of Planning and 
Construction, and, Barbara Sahm, Environmental Review Officer with 
the Department of City Planning unanimously selected Greiner 
Engineering as the firm most qualified to meet our needs in this 
project. 

Commissioner Goosby asked what the time frame is for this project. 

Mr. Turpen responded that the first phase will take six months. The 
study is designed to self-terminate if the first phase is not 
positive. He expected to return after the first of the year at which 
time the Commission will decide whether or not to go into the .second 
phase. 

Commissioner Goosby asked if this firm had the personnel and 
expertise to handle each of the three areas. 

Mr. Turpen responded that they did. Greiner is a nationally 
recognized engineering firm dealing with airports and environmental 
issues . 



Consent to Assignment of Duty Free/In-B?nd Lease from AlTders 
International, Ltd., to Allders International USA, Inc. 

No. 89-0150 

Mr. Turpen said that at the Comrr ; ss ion ' s direction staff too^ another 
look at this assignment. It is the City Attorney's opinion that the 

Minutes, August 15. 1989, Page 7 



law provides that the assignor remains obligated under the lease 
unless the Airport releases them. The language was constructed to 
protect the Airport in that regard. 

Commissioner Stephens said that he did not have a problem with it. 

Commissioner Murphy asked if they were providing the Airport with a 
guarantee from the parent. 

Mr. Robert Mayers, Acting Airport General Counsel, responded that Don 
Garibaldi, Airport's General Counsel, reviewed the assignment and 
concluded that the parent corporation is legally obligated under the 
assignment. Mr. Mayers said that he did not know if the assignment 
agreement specifically states that it is a guarantee. 

Commissioner Murphy believed that the Allders attorney indicated that 
we could get an guarantee if we wanted one. He said that he was 
happy as long as the parent company was clearly on the hook and that 
the assignment agreement has been looked at with an eye toward waiver 
surityship defenses. He said that his concern was a guarantee or 
obligation without that. 

Mr. Turpen said that it was stated in a letter to Ms. Gittens. 



6. Assignment of International Terminal Candy Shop Lease to Duty Free 

Snoppe^s, Ltd. 

No. 89-0151 Resolution approving the assignment of 

the Inte r national Terminal Candy Shop 
tc Duty Free Shoppers, Ltd. 

Mr. Turpen explained that this is an assignment of the existing lease 
for the candy shop in the International Terminal, located on the 
right hand side of the concourse. He said that Duty Free Shoppers 
has the right of first refusal and they have agreed to continue with 
the sale of bulk candy at this location for the remainder of the 
lease. 

Commissioner Goosby said that Duty Free has the right of first 
refusal in 1990 to take over the Skyline Candy concession and Skyline 
has negotiated with Duty Free to pick up their lease now. 

Mr. Turpen said that Duty Free is picking up Skyline Candy's 
commitment through the end of the term. They have the right of first 
refusal for that space at the end of the term. 

Commissioner Goosby asked what sort of legal footing the Airport 
would have given the fact that the bidders for this concession were 
not allowed to participate in negotiations with Skyline Candy. 

Mr. Turpen responded that Duty Free has the legal right to assume 
responsibility for that space, with the consent of the Commission. 
The Commission does not have to grant permission but he did not know 
what purpose that would serve. 

Commissioner Goosby asked if the right of first refusal would come 
into play only at the termination of the lease, or, if it could 
happen at any time. 

Mr. Turpen responded that he wouldn't want to answer that question 
without referring with Counse 1 . He was not certain exactly how the 
language reads but he would be happi to pull the specific language 
and come back at the next meeting. 

Minutes, August 15, 1989, Page 8 



Commissioner Goosby commented that had he been a bidder he might have 
wanted a crack at this space. He wanted to make sure that the 
Airport had a firm legal footing, he said that he would have no 
probl em if it is legal . 

Mr. Turpen added that the right of first refusal was an open issue at 
the time of the bidding process back in 1981 or 1982. He said that 
if there is a concern he would be happy to take a look at it and 
return to the Commission. 

Commissioner Goosby suggested passing it pending review of the 
language. 

Mr. Turpen ag r eed. 

7. Recommendation to Modify Airport Police Retirement Plan 

No. 89-0152 

Mr. Turpen said that these issues are negotiated outside of the 
purview of the Commission, however, he thought it appropriate to have 
the Commission's views on the matter. He recommended that the 
Commission support it as it offers certain benefits to the Airport as 
well as to the Police Department in terms of continuity and 
personnel . 

Mr. Turpen explained that the Commission's action will have no effect 
on this issue. It is merely advisory and intended to place the 
Commission's views on record. He anticipates that this will be the 
subject of discussion withir the next year. 



Award of Contract No. 1952: 

Runway 28L Overlay and Reconstruction 

No. 89-0153 Resolution awarding Contract No. 1952 

to O'Grady Paving, Inc. in the amount 
of $11 ,088,785.00. 



Candy Mann - Trial See's Candy Cart 

No. 89-0154 

Mr. Turpen explained that this is a trial to sell See's Candy in the 
North Terminal for a period of six months. He said that if the 
concession is successful it will be presented to the Commission as a 
regular concession opportunity. Mr. Turpen explained that this cart 
is situated alongside the escalator at the security checkpoint to 
Boarding Area ' F' . 

Commissioner Duval 1 asked if See's had a candy cart at any other 
location. 

Mr. Turpen said that this is See's first location at SFC. He did not 
know if they were located at any other airport. 

Commissioner Duval 1 said that she liked the idea. 

Commissioner Goosb) ast eti If Care.. Ma n was contracting with See's to 

Minutes. Auaust 15. 1989, Page 9 



sell their candy and if this would be an extension of Candy Man's 
candy/flower shop. 

Mr. Turpen responded that that was correct. 

Commissioner Goosby agreed that it was nice to have See's Candy at 
the Airport. 

Commissioner Duval 1 asked if this was to be operated under a license 
agreement. 

Mr. Turpen responded that they are operating under a franchise 
agreement. 

Mr. Bob Rhoades, Airport Property Management, added that See's is 
ecstatic about this. They are doing between $1500 and $2000 a day. 



The following item was put over. 

10. Airport Advertisement 

Resolution authorizing staff to place 
a full page advertisement in Fortune 
Magazine and authorizing the Director 
to contract with an ad agency for the 
development of the advertisement. 

Mr. Turpen explained that Fortune Magazine is doing a major Pacific 
Basin issue and the Airport has an opportunity to participate. A 
full page advertisement will ru r approximately $50,000. He said that 
the Airport rarely participates in such things but due to the City's 
interest in the Pacific Rim and in anticipation of the development 
San Francisco as a major gateway, the Airport is considering it. He 
said that he is simply recommending this as an opportunity that needs 
to be evaluated. 

Commissioner Duval 1 asked if this has been coordinated with the 
Convention and Visitors Bureau. 

Mr. Turpen responded that it has been coordinated with James Ho of 
the Mayor's Office but not with the Convention and Visitors Bureau. 
He said that Mr. Ho was favorably disposed to the idea if the 
Commission wished to pursue it. 

Commissioner Duvall felt that there should be some coordinated effort 
with the Convention and Visitors Bureau as they have some d.irect 
responsibility to promote San Francisco. She felt that this may have 
some merit but she also felt that coordinated efforts with other 
agencies having mutual concerns should be considered. 

Mr. Turpen said that he would forward this information to the Bureau 
and tell them that the Airport would be happy to participate. 

Commissioner Stephens said that the Airport should examine what type 
of participation it will consider. He said that there is advertising 
and an overall position. If the purpose is to bring in new business 
he did not know if it would work. He would like to see the theory 
behind the layout and the ad that would cause more people to do 
business with us. He asked if this piece would push San Francisco or 
the Ai rport . 



Minutes, August 15, 1989, Page 10 



Mr. Turpen said that Sa n Francisco Airport is the gateway to an area 
which is tremendously diverse both culturally and in the business 
world. He said that the idea of San Francisco as an accommodating 
and attractive gateway will continue to be promoted. 

Commissioner Stephens felt that the Commission should take a look at 
the ad before the Airport commits $50,000. He said that if this will 
do us some good it is money well spent. 

Mr. Turpen said that he will solicit the Bureau's comments and work 
with them if the Commission decides to proceed. 

Commissioner Duval 1 said that at the very least we should find out if 
the Bureau intends to run an ad. 

Commissioner Bernstein asked who else would be placing ads. 

Mr. Turpen said that he did not know however he felt that all of the 
players in the Pacific, from businesses to municipalities, will be in 
this issue. 

Mr. Turpen said that location is presently the key to involvement in 
the Pacific Rim and SFO enjoys a location which allows us to reach 
Asia essentially non-stop. The new 747-400 will allow us to reach 
every Pacific Basin destination from San Francisco non-stop. 
Conversly, it will also allow Pacific Basin destinations to reach 
interior U.S. airports non-stop. The further spectre of twin engine 
airplanes flying to Honolulu from interior U.S. cities and connecting 
with a Honolulu hub is there as well. He suspected that within two 
or three years twin engine flights will be authorized over the 
Pacific from Honolulu. The Pacific has always been essentially a 
four-engine region because of the distances involved. The 747-400 
will place a new dynamic into the situation. Denver and Dallas are 
not that far away and they are clearly interested in pursing Pacific 
activity, as well as Seattle, Vancouver and Portland on the coast. 
Phoenix and San Jose are twin-engine distance away from Honolulu, 
which is a major connecting point. 

Mr. Turpen explained that presently a twin engine aircraft must be 
within 60 minutes of a place to land. That is possible over the 
Atlantic, but not the Pacific. This limit can be extended up to 120 
minutes under certain criteria. It is possible, technically, to 
cross the Pacific to Honolulu in a twin engine aircraft. The problem 
is that there is nothing but water between here and Honolulu and the 
distance is to great to manage on only one engine. He said that 
there has been significant effort by a number of groups to authorize 
twin engine operations over the Pacific. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The following items were adopted unanimously. 

1 1 . Resolution Modifying Lease and Use Agreement w ; th Northwest Airlines. 

Inc . - Modif icatior N; . 4 

No. 89-0155 Resolution modifying Northwest 

Airlines, Inc. Lease and Use Agreement 
No. 82-0199 relinquishing certain 
premises in the International Building 

baa t . -. • . : t> . 

Minutes, August 15, 1989, Page 11 



12. Bid Call - Contract No. 1889: 

North Terrri na 1 Carpet Replacement Phase III 

No. 89-0156 Resolution approving the scope, 

budget, and schedule for Airport 
Contract No. 1889 and authorizing the 
Director to call for bids when ready. 



13. Duty Free/In-Bond Concession - Design Approval 
No. 89-0157 

14. North Terminal Hub Principal Concession - Design Approval 
No. 89-0158 

15. Close-Out Contract 1464: 
Boarding Area 'B' Apron Extension 

No. 89-0159 

1 6. Retirement - W ; 11iam Kelly 
No. 89-0160 

17. Approval of Claims Settlement 
No. 89-0161 

18. Resolution Ratifying Personnel Actions 

No. 89-0162 Resolution, in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Air-ports. 



J. NEW BUSINESS: 

Commissioner Bernstein asked Mr. Timothy Treacy if he wished to address 
the Commi ssion . 

Mr. Timothy Treacy, San Francisco Airport Noise Committee, said that he 
appeared before the Commission several months ago to express the 
Committee's concerns regarding the runway reconfiguration study. He said 
that at that time he was reassured that consideration would be given to 
the problem of paths. He said that his Committee attended the public 
forurr on WorMng Pape-" 'B a— alsc filed wrltter comments. He said that 

Minutes, August 15, 1989, Page 12 



while those comments were noted in the addendum to Working Paper 'B' there 
was no response. They see no consideration being given to their concerns 
in Working Paper 'C. He said that Working Paper 'C was authorized to be 
issued on June 6 but was not issued until some time in July. He said that 
his Committee asked for an extension of time in which to file comments 
beyond the August 18 deadline. He said that they were denied that request 
and will meet the August 18 date. 

Mr. Treacy said that Working Papsr 'C is described as a landside 
document. It specifically excludes any consideration of the runway side, 
i.e. aircraft operations. It does not discuss projected increases in 
operations, what runways will be used or what types of aircraft will be 
involved. He said that there is little discussion of the noise impact and 
no discussion at all of the impacts on the western and southern portions 
of San Francisco. He said that they were also very concerned that stale 
data is being used. Mr. Treacy said that the small consideration given to 
the noise impact is based upon April-June, 1986 data. Since that time 
changes have been undertaken such as the shift from the use of runway 8 to 
runway 1. He said that the study needs to be upgraded substantially in 
that regard. 

Mr. Treacy said that Chapter 7 deals with forecasted passenger growth. 
The growth that is proposed under the plan exceeds the recommendations 
that are stated under the Metropolitan Transportation Commi ssion/ABAG 
Airport Plan Study. He said that his Committee's concern is that this 
plan, which excludes any consideration of the flight operations and 
therefore any consideration of the noise impacts, in forecasting passenger 
demand, will exceed the capacity and arrive at the need for an additional 
runway. They see no recognition given in the master plan process to that 
item. 

Mr. Treacy said that his Committee wa r ts the Commission and Airport staff 
to recognize that there is a noise problem in western and southern San 
Francisco. Implementation cf this master plan is only going to exacerbate 
that problem. His Committee would like to see an admission of the problem 
and a study of attempts to mitigate it. 

Commissioner Bernstein interrupted Mr. Treacy and told him that according 
to statements he has just made, the inference is that the Airports 
Commission and staff are not doing anything to mitigate the noise problem. 
Commissioner Bernstein told Mr. Treacy that the Airport is currently in a 
lawsuit with the FAA to keep noisy aircraft out of SFO. In that process 
the Airport has jeopardized $25-million in Federal funds in addition to 
the money spent on legal fees. He asked Mr. Treacy what made him think 
that his Committee knew more about this issue than Airport staff. 

Commissioner Goosby told Mr. Treacy that the runway issue is a separate 
study. The Commission gave its approval to hire a firm to undertake that 
study at this meeting. That study will determine if there will- be a 
detrimental impact on noise. He told Mr. Treacy that he appreciated the 
Committee's concerns. 

Mr. Treacy said that while he appreciated Commissioner Goosby's comments 
he said that the EIR will be tied to the master plan. The runway 
reconfiguration study may also be tied to the parameters of the master 
plan. The way the master plan stands now it excludes consideration of any 
noise impact in San Francisco. He said that they were only asking that 
the problem be recognized and that they be allowed to present a potential 
mitigating solution. He said that there are solutions and his Committee 
has proposed them to the FAA. 

Commissioner Goosby wondered if language could be added to the master plan 
that would prohibit the plan fron- exceeding a certain decible point. 



Minutes, August 15, 1989, Page 13 



Mr. Turpen responded that the problem is that the government deregulated 
civil aviation for a reason, i.e., the government wanted free access for 
an airline tc fly anywhere it wanted. The FAA clearly supports it and 
will take no responsibility for noise. The Airport has absolutely no 
control outside of its noise regulation to deny anyone access to SFO. 

Mr. Turpen said that FAA is currently withholding $40-million in funds 
designated for SFO because of our lawsuit. 

Mr. Turpen said that he understands Mr. Treacy's concerns and that Mr. 
Treacy's Committee has not be responded to specifically on each point. He 
asked Mr. John Costas, the Airport's chief planner, to address the 
Commi ssion . 

Commissioner Bernstein told Mr. Treacy that he is not being belligerent. 
He said that he was angry because his Committee should realize that the 
Airport spends an enormous number of hours trying to resolve the problem 
and the Commission should not be accused of being insensitive to the needs 
of their neighbors. He said that the Airport has insulated schools and 
homes and done u t it could to mitigate the problem but as long as there 
are planes th- /ill be noise. He felt that Mr. Treacy's Committee 
should join ti . Airport in its efforts rather than make accusations. 

Mr. Costas said that he has discussed this process with Mr. Treacy and the 
Noise Committee and he explained that the master plan process does and 
will consider the concerns presented by the Noise Committee. These 
considerations will be addressed in the Environmental Impact Report which 
will look at all of the impacts as well as the benefits. However, before 
an EIR can be done, a plan must be in place. Mr. Treacy has been advised 
of this. The Airport is in the process of doing an EIR on the master plan 
right now. 

Mr. Costas also said that Mr. Treacy feared that the runway study will be 
tied to the master plan. 

Commissioner Goosby said that the master plan does not address the runway 
configuration study. 

Mr. Costas said that the reason that the master plan does not address the 
runways is because the master plan specifically states that the forecasted 
traffic does not call for additional runways. A separate study will be 
done on the runway system that will deal with noise. 

Commissioner Goosby said that Mr. Treacy's point was valid. 

Mr. Costas said that this runway study is another effort by the Commission 
in addition to all of the money the Airport has already spent to mitigate 
noise. 

Commissioner Goosby understood what Mr. Costas was saying but he did not 
feel it would hurt to add some language to the master plan that would 
satisfy the concerns of the Committee with regard to addressing this 
issue. 

Mr. Costas said that that could be accomplished in the EIR. 

Mr. Treacy noted that under the provisions of the California Environmental 
Quality Act, if the issue is not raised in the master plan it is unlikely 
that the EIR will address it. That is their concern. 

Mr. Treacy concluded his remarks by saying that he was not accusing the 
Commission of anything. His Committee has worked with the utmost 
cooperation with Mr. Turpen. They have supported his staff and have 
written letters to the FAA requesting that the Airport's funds be released. 

Minutes, August 15, 1989, Page 14 



They are making efforts on every possible level. This Commission is a 
very important forum for them. It is an opportunity for them as citizens 
and residents of San Francisco to come before the Commission to make their 
concerns known and ask that they be given consideration. They are willing 
to work with the Airport. 



K. CORRESPONDENCE: 

There was no discussion by the Commission 

* * * 



M. ADJOURNMENT TO GO INTO CLOSED SESSION. 

There being no further calendared business before the Commission the 
meeting adjourned at 9:54 AM to go into closed session. 



Jec n Caramatti 
Commission Secretary 



Minutes, August 15, 1989, Page 15 



< SAN FRANCISCO 
AIRPORTS COMMISSION 




•T::.. 



MINUTES 



DOCUMENTS DEPJ. 



SEPTH-EEF. 5, 1< 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

Prtsidtnt 

DR. Z. L. GOOSBY 

Vic« Prtsidtnt 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Ai rports Commi ssion 

September 5, 1989 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: ■ 



ROLL CALL: 



C. ADOPTION OF MINUTES: 



Regular Meeting of 

August 15, 1989 89-0166 3 



ANNOUNCEMENT BY SECRETARY: 3 

ITEMS INITIATED BY COMMISSIONERS: 3 



F. ITEMS RELATING TO ADMINISTRATION, 

OPERATIONS I MAINTENANCE: 

1. Application of AirTrain, Inc. and 
Ryan International Airlines for 

Variance from Noise Abatement 89-0167 4-7 

2. Award of North Terminal, Gate 64 

Newsstand Lease 89-0168 7-8 

3. Award of Pacific Bazaar Lease 89-0169 8-9 

4. Resolution Acknowledging the 
Merger of the Flying Tiger Line, 

Inc. into Federal Express Corp. 89-0170 9 

5. Budget Rental Car Relocation 

Rental Credit 89-0171 9-11 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

6. Commendation: Kathy (Flash) 

Schmidt 89-0165 11 

7. Declaration of Emergency: 
Electrical Cable Fai lure. 

Cable 12-BABP-l 89-0172 11 

8. Rental Credit - United Airlines 89-0173 11 



9. Modification No. 2 to Lease 

and Use Agreement - Mexicana 89-0174 11 

10. Bid Call - Contract No. 2144R: 
North Terminal - Groundwater 
Monitoring/Recovery Wells 

Installation 89-0175 11 

11. Appointment to the Board of 
The San Francisco Airport 
Improvement Corporation - 

Frank G. Chambers 89-0176 12 

12. Travel/Training - FY 1989-90 89-0177 12 
H. NEW BUSINESS: 12 
I. CORRESPONDENCE: 12 



K. ADJOURNMENT TO GO INTO CLOSED 

SESSION: 12 



Minutes, September 5, 1989, Page 2 



Mi nutes 

of the 

Airports Commission Meeting 

September 5, 1989 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: 

Absent: 



Morris Bernstein, President 
Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 

Patrick A. Murphy 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of August 15, 1989 were adopted by 
order of the Commission President. 

No. 89-0166 



D. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary announced 
unanimous adoption of resolution no. 
89-0164, modification no. 1 to 
agreement with Morrison and'Foerster 
at the closed session of August 15, 
1989. 



E. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



Minutes, September 5, 1989, Page 3 



F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

T he following items were adopted unanimously. 

1 . Application of AirTrain, Inc. and Ryan International Airlines for 
Variance from Noise Abatement Regulation 

No. 89-0167 Resolution granting application of 

AirTrain, Inc., and Ryan International 
Airlines under specified conditions. 

Commissioner Bernstein asked Mr. Timothy Treacy, Airport Noise 
Committee, if he wished to address the Commission. 

Mr. Treacy asked the Commission why Ryan International was included 
and if it was a separate variance. 

Mr. Treacy said that his Committee attended the hearing on this issue 
and stated their opposition to the application. He said that the 
reason for the Noise Committee's opposition to this variance is that 
AirTrain is a new entrant, not an existing carrier as were the other 
applicants for variances. The purpose of the noise regulation, as 
identified in Section 1 of the regulation, is "to provide for 
continual reduction of noise." He added that Mr. Wharton stated in 
his findings that this will increase the overall level of noise so it 
is contrary to the stated purpose of the noise regulation. 

Mr. Treacy said that even though AirTrain will replace Evergreen, 
Evergreen will still have its variance. AirTrain's original 
application for variance sought a complete exemption from the 257. 
rule because none of its operations complied with the noise 
regulation. AirTrain will seek an additional exemption from the 
nighttime hours limitation in 1991 . He presumed that that would be 
addressed at a later time under Mr. Turpen's recommendation. 

Mr. Treacy said that Mr. Wharton states on page 6 of his findings 
that AirTrain obtained the U.S Postal Service contract knowing the 
Airport's noise regulation. AirTrain stated that it had to go ahead 
and submit its bid pursuant to the requirements of the Postal 
Service. Mr. Treacy said that the Noise Committee was sympathetic 
and they understood some of the economic problems involved, but 
approval of this variance will present a dangerous precedent. If 
this variance is granted it will be difficult to rationalize denial 
of any variance in the future. Further, it will add to the noise 
problem rather than reduce it as AirTrain is a new entrant to SFO. 
He said that AirTrain has presented the Airport with a take it or 
leave it situation. 

Mr. Treacy recommended that AirTrain's request for variance be denied 

Commissioner Bernstein asked Mr. Curt Holtzinger, Airport Noise 
Committee, if he wished to address the Commission. 

Mr. Holtzinger asked for clarification of Ryan International's role 
in this variance. This is the first time that Ryan's name has 
appeared on AirTrain's request for variance. 

Mr. Lou Turpen, Airport Director, responded that Ryan's participation 
revolves around the question of FAA certifications. Ryan is coming 
in on an interim basis to allow execution of the Postal Service 
contract and, in effect, will operate aircraft for AirTrain until 
such time as the FAA administrative process is concluded. At this 
time there is no reason to suspect that there is any impediment. 



Minutes, September 5, 1989, Page 4 



Commissioner Goosby asked why Ryan was entering the process. 

Mr. Turpen responded that AirTrain needs certain FAA certifications 
in order to operate. Ryan will act as a substitute for AirTrain 
pending their receipt of those certifications. 

Mr. Holtzinger said that the Roundtable sent a letter to the 
Commission opposing this variance. The major concerns of the 
Roundtable were similar to Mr. Treacy's arguments. He said that 
AirTrain was fully aware of the rules and did not seek a variance 
prior to filing for the contract. 

Mr. Holtzinger said that to date six variance applications have been 
received, four of which have been granted, one was withdrawn and one 
was denied. There is a concern that the regulation is not being 
enforced vigorously and that this sets a dangerous precedent of 
allowing a new entrant in and not requiring them to abide by the 
rules. He said that it is one thing to work with airlines who are 
operating and grandfather them in under a new ordinance, but to throw 
the ordinance out for new entrants is a bad step. 

Commissioner Bernstein asked Ms. Carol Gamble if she wished to 
address the Commission. 

Ms. Gamble, representative of the Glen Park Association, said that 
she opposed granting the variance to AirTrain. The position of the 
Glen Park Association, and of many other neighborhoods in San 
Francisco, is that the purpose of the noise regulation is to protect 
residents from business decisions that are made by corporations 
operating airlines. These applicants made a business decision not to 
comply with San Francisco's noise regulation. It was in their 
economic interest to make that decision. They came forward with the 
application knowing the terms of the regulation and expected to be 
granted a variance despite that knowledge and despite the 
Commission's public statements in support of this regulation. Ms. 
Gamble said that the Association feels that the burden of this 
business decision should not be placed on the residents of San 
Francisco. These economic decisions are made with full knowledge of 
the facts and the residents of San Francisco should not be saddled 
with the results. She asked that the Commission deny the variance 
for the reasons already stated and to show the Commission's support 
of the noise regulation and its concern that the appropriate 
precedent be established. 

Commissioner Bernstein asked Mr. Jack Mclnteer if he wished to 
address the Commission. 

Mr. Jack Mclnteer, General Counsel and former President of. Ryan 
International, explained to the Commission that AirTrain ran into a 
defect in its reliability program. He said that this is a monitoring 
program to make sure that maintenance programs are handled properly. 
He said that the defect was technical but it takes a while to correct 
it. During this time they will be supervised by Ryan managers and 
will operate pursuant to Ryan standards. The schedule will be run 
with AirTrain airplanes, crews and mechanics. No additional 
airplanes will be placed on the AirTrain schedule. 

Commissioner Duvall said that what this boils down to is a question 
of incidence of noise. She said that she understands the proposed 
variance to be a continuation of operations as they currently exist 
in terms of the level of operations and the noise impact to the are 

Mr. Turpen said that approximately a year and a half ago Evergreen 
requested a variance which the Commission granted in great measure to 



Minutes, September 5, 1989, Page 5 



ea 



Evergreen's involvement with the U.S. Postal Service and the fact 
that San Francisco is the major airmail transfer point in Northern 
California. He said that in retrospect th°re were two things that 
should have been done. We failed to go to the U.S. Postal Service 
and advise them that award of their contract would not necessarily 
cause a variance to be granted. We also failed to tie the Evergreen 
variance to the length of the Postal Service contract. He explained 
that there will be approximately a three to four month overlap as 
Evergreen's variance runs to the end of the year. Although staff 
will ask Evergreen what their intentions are for the remainder of the 
variance, there is a spectre of five additional operations per week 
between now and the conclusion of Evergreen's contract on December 
31, 1989. 

Mr. Turpen said that with respect to AirTrain, staff has gone to the 
U.S. Postal Service and advised them that any future contracts should 
obligate the contracting party to meet the noise regulations of those 
airports being served. He said that staff has conditioned this 
variance for the remainder of the year, thus obligating AirTrain to 
return to the Commission almost immediately with a further definition 
of their plans. This variance is also conditioned upon AirTrain 
continuing as the contractor for the Postal Service in addition to 
other conditions which have been fairly standard in prior variances 
for the 727-100. He explained that one of the things being looked at 
is their retrofit program and the possibility of upgrading the 
727-100 and making it wholly compatible with cur operations. Mr. 
Turpen explained that AirTrain must wait in line for this 
retrofitting and unfortunately they are not at the head of the line 
as some of the other applicants have been. 

Mr. Turpen said that one reason why such a short time frame is being 
placed on this request is because there has been some initial 
confusion with respect to FAA certification authority on the 
maintenance check program. There has also been uncertainty with the 
U.S. Postal Service contract and litigation involving that contract. 
There also needs to be further clarification on the acquisition of 
hushkits for the 727-100. 

Commissioner Goosby asked if there had been some question on the 
effectiveness of the hushkits. 

Mr. Turpen responded that there were three or four different 
hushkits. Staff had a high degree of confidence in the Pratt and 
Whitney retrofit. The one to which Commissioner Goosby was referring 
related to procedural issues regarding the 707. He said that he 
would check i t out. 

Mr. Turpen said that he recommended granting a variance through 
December 31, 1989. This would obligate AirTrain to return to the 
Commission no later than November 1, 1989 with a request for a new 
variance based on whatever new information they might have at that 
time. This would include their ability to solve their technical 
problems with the FAA. The Commission will also have a clearer 
picture of the current litigation between the U.S. Postal Service, 
Evergreen and AirTrain as well as AirTrain's ability to get on the 
retrofit list for Stage III aircraft. 

Commissioner Goosby said that it would also give staff the 
opportunity to evaluate the effectiveness of the retrofit. 

Mr. Turpen said that the Commission has approved certair variances 
based on a specific retrofit. Other retrofits are available and we 
would want to take a careful look at them as well. 



Minutes. September 5, 1989, Page 6 



Mr. Turpen reminded the Commission that this is the seventh request 
for variance. Of those requests, DHL and Evergreen were granted 
variances and Northwest, Flying Tiger and one other airline withdrew 
their requests. Braniff's request was denied and subsequently 
granted on appeal and is now meeting the requirement with a stage III 
aircraft. 

Mr. Holtzinger offered a point of clarification and said that as a 
condition of each variance a representative of the airline must 
attend Roundtable meetings. Currently, there are four airline 
representatives attending Roundtable meetings. . .DHL, Canadian, 
Evergreen and Braniff. 

Commissioner Goosby said that at the end of the year the Commission 
will have an evaluation of the Stage III hushkits for the 727-100 
aircraft. This variance will expire on December 31, 1989 unless the 
Commission is satisfied with the hushkit and extends the variance. 
In the interim, a representative of AirTrain will attend the monthly 
Roundtable meetings. Commissioner Goosby asked if the hearing 
officer made a recommendation. 

Mr. Don Garibaldi, Airports General Counsel, recommended granting the 
variance. 

Mr. Turpen said that staff will return with answers that will 
hopefully satisfy the Commission's questions. The Commission will be 
asked to render a further decision on this issue at that time. 

Commissioner Goosby commented that AirTrain is seeking a variance for 
a period of two years. 

Mr. Turpen said that within the next three to four months staff will 
hopefully have far more definitive answers than could be offered 
today. At the same time, AirTrain will have an opportunity to take a 
look at the way it operates. If AirTrain can't meet the Commission's 
expectations they can examine alternative measures. He said that one 
alternative for AirTrain is to bring on a compliant aircraft. 

Mr. Turpen told the Commission that mail is presently being trucked 
over to Oakland from SFO. 

Commissioner Goosby hoped that the opponents to this variance 
understand the Commission's concerns. Presently, neither the 
Commission nor the Director intends to grant this variance beyond 
December. He said that he would be very reluctant to consider a 
request for any further extension of this variance without meeting 
the requirements of the ordinance. He thanked the residents for 
sharing their concerns with the Commission. 



Award of North Terminal, Gate 64 Newsstand Lease 

No. 89-0168 Resolution awarding the North 

Terminal, Gate 64 Newsstand Lease to 
SFO News/Western Motives. 

Commissioner Goosby asked what other locations they have at the 
Airport. 

Mr. Bob Rhoades, Airport Property Management, responded that they 
have Western Motives which is a sublease to Duty Free, and Personal 
Priorities which is their own. They are also operating the newsstand 
in the North Terminal Hub. 

Minutes, September 5, 1989, Page 7 



Commissioner Goosby asked if the Airport ever changed its small 
business definition to correspond to the Human Rights Commission's 
def i ni tion . 

Mr. Turpen responded that we have not. He said that the Airport's 
definition is better. He said that he would do a comparison for the 
Commi ssion. 

Commissioner Goosby commented that the Federal Government's 
definition is way out of line. 

Commissioner Bernstein told the Commission that there are 19,000,000 
small businesses in this country. Congress recently presented an 
award to the best conducted small business which does slightly under 
$20-mi 1 1 ion a year. 

Commissioner Bernstein asked how the Airport defined small business. 

Mr. Turpen responded that the Airport defines it at $600,000. 



Award of Pacific Bazaar Lease 

No. 89-0169 Resolution awarding the Pacific Bazaar 

Lease to ABC Cigar, Inc . 

Commissioner Goosby reminded the Commission that when Host 
International begins bidding on these concessions the chances of 
local /minority/women busineses getting these leases is almost nil. 

Commissioner Stephens said that ABC Cigar bid almost three times the 
next bidder. 

Commissioner Duvall asked how many square feet this space involved. 

Mr. Rhoades responded that it is 2,049 square feet. 

Commissioner Duvall asked what product line would be carried. 

Mr. Rhoades responded that the product line would be a variety of 
Pacific goods having a bazaar-like approach. The goods can range in 
price from $20.00 up to $500.00 and will be reminiscent of the 
bazaars in Istanbul and Asian countries. The concessionaire will 
have a lot of latitude but the concession must have a Pacific Basin 
orientation. 

Commissioner Duvall asked if food items will be allowed. 

Mr. Rhoades responded that packaged food items will be allowed. He 
said that the lease requires representation from four or five Pacific 
Rim countries . 

Commissioner Duvall asked if this is a new venture for ABC Cigar. 

Mr. Rhoades responded that it is. 

Commissioner Duvall asked what kind of background was required. 

Mr. Rhoades responded that a business background was required but he 
did not believe that there was a specific requirement for experience 
in the bazaar arena as this is a different type of merchandizing and 
retai 1 ing. 



Minutes, September 5, 1989, Page 8 



Commissioner Duval 1 assumed that the company would expect to do 
approximately $4-mi 1 1 i on a year in 2,000 square feet in order to meet 
their minimum. 

Mr. Rhoades responded that this is the second busiest area on the 
Airport. 

Mr. Turpen said that we are getting about $1 .3-mi 1 1 ion for the Hub 
newsstand which is 3,000 square feet. 

Commissioner Duvall said that the newsstand was a general merchandize 
bid. 

Commissioner Stephens asked if ABC Cigar was the woman-owned company. 

Mr. Turpen responded that it is owned by Marsha Givens. ABC Cigar 
used to lease the newsstand. 

Commissioner Stephens remembered that they were beaten out of a lease 
about six months ago. 

Commissioner Duvall said that she was glad to see this award. 



4. Resolution Acknowledging the Merger of the Flying Tiger Line, Inc. 
into Federal Express Corporation 

No. 89-0170 Resolution acknowledges the 

acquisition and merger of the Flying 
Tiger Line, Inc. by Federal Express 
Corporation with Federal Express 
continuing as the surviving 
corporation with assignment of rights 
and interests. 



5. Budget Rental Car Relocation Rental Credit 

No. 89-0171 

Mr. Turpen told the Commission that staff is working with the 
on-Airport rent-a-car companies to develop facilities which will 
carry them beyond the year 2000. He said that the only way to 
accomplish this in an area which has limited space is to built up. 
He said that the Commission is aware of the intention to build 
multi-story rent-a-car garages. The rent-a-car companies have 
indicated that they are prepared to engage in a long term commitment 
to the Airport based on their ability use these facilities. This 
item simply allows the Airport to make way for the initial 
development of one of the rent-a-car structures. 

Commissioner Goosby asked why approval was being sought before the 
master plan is approved or an EIR is completed. 

Mr. Turpen responded that this is a risk but the problem will have to 
be addressed ultimately. Building up is our only alternative. He 
said that this move will free ,p space for construction. There is a 
certain element of risk in moving ahead at this point but staff 
believes that that risk is worth taking. He told the Commission that 
the space will be utilized even if the Commission opts to do nothing. 



Minutes, September 5, 1989, Page 9 



Mr. Jason Yuen, Administrator, Bureau of Planning and Construction, 
told the Commission that this will save about five or six months time 
in the construction of the master plan projects. This will have to 
be done sooner or later unless the Commission feels that the master 
plan will not move forward. He felt that it was better to proceed 
than to wait. 

Commissioner Goosby believed that it would be done eventually but he 
did not feel it was prudent to take this on before approval of the 
EIR. He asked who, besides the Commission, must approve the EIR. 

Mr. Yuen responded that the Board of Supervisors must approve the EIR 
and that may take a long time. 

Commissioner Goosby said that if the Director still believed that 
this should be done in spite of the risk, that was good enough for 
him. 

Mr. Turpen said that he has given this a lot of thought. He said 
that this operation continues to grow as the passenger base grows. 
If we don't go vertically we will have to provide additional space 
for the rent-a-car companies in order to maintain the revenues for 
the Airport. That extra space will have to be provided and this is 
an opportunity to do so. He said that it is only risk-taking if one 
assumes that this money is wasted if we don't proceed with the master 
plan. He doesn't believe that this money will be wasted if we don't 
proceed. 

Mr. Turpen said that the Airport is responding to the efforts of the 
community. It is the community that causes people to come to San 
Francisco, not the Airport. The City is expanding the Moscone 
Center, more and more hotel rooms are being built, we continue to try 
to attract business, we are attempting to build a downtown stadium. 
All of these things are designed to continue to promote our basic 
business which is tourism. The community supports those efforts. 
The Airport simply happens to be the welcome mat and we must respond 
to everything that goes on in the City. We are responding to the 
tremendous passenger demands which are generated by San Francisco. 

Commissioner Duvall asked Mr. Yuen to explain the six month time 
frame . 

Mr. Yuen explained that the first step is to vacate the lots. Work 
will then be done on substations and underground utilities. Before 
any of that can be done the rental cars must be moved out of the way. 

Commissioner Duvall asked if staff will act immediately to move the 
rental cars with the approval of this expenditure. 

Mr. Yuen responded that he will return to the Commission after 
October 17 to ask that architects and engineers be retained to begin 
designing and surveying the sites and put out contracts to do other 
site work. He said that this would not include the construction of 
buildings as that work requires an environmental impact report. 

Mr. Turpen said that the Commission is being asked to take a risk 
position in moving ahead with the design. He felt that the plan is a 
sound one and that moving ahead with the design, particularly with 
respect to utilities, is prudent. Staff believes that the program is 
sound and environmentally responsive and that it will be approved. 
Given that approval staff can move forward fairly quickly to solve 
some problem such as an international arrivals building to 
accommodate our current level of passengers. Right now SFO has more 
international arrivals then we can handle. He said that a one or two 



Minutes, September 5, 1989, Page 10 



year delay can be particularly gruesome when trying to manage the 
summer rush and the international arrival peaks. 

Commissioner Goosby said that he could not argue with a staff that 
has a record of meeting deadlines and staying within budgets. He 
said that he has no opposition to this. 

Commissioner Bernstein asked Mr. Turpen if he called Congressman 
Anderson. 

Mr. Turpen responded that Congressman Anderson has not been in the 
office when he has called, but he has left messages. 



G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

6. Commendation: Kathy (Flash) Schmidt 
No. 89-0165 



7 . Declaration of Emergency: 

Electrical Cable Failure, Cable 12-BABP-l 

No. 89-0172 Resolution ratifying the action of the 

President of the Commission in 
declaring an emergency and authorizing 
the immediate start of work to replace 
the failed electrical power cable. 



8 . Rental Credit - United Airlines 

No. 89-0173 Rental credit for Airport requested 

purchase of computers by United 
Ai rl i nes . 



9. Modification No. 2 - Lease No. 83-0045 Mexicana Airlines 
No. 89-0174 



10. Bid Call - Contract No. 2144R: 

North Terminal - Groundwater Monitoring/Recovery Wells Installation 

No. 89-0175 Resolution approving the scope, budget 

and schedule for Contract No. 2144R 
and authorizing the Director to call 
for bids when ready. 



Minutes, September 5, 1989, Page 1 



1 1 . Appointment to the Board of The San Francisco Airport Improvement 
Corporation 

No. 89-0176 Resolution consenting to the 

appointment of Frank G. Chambers. 



12. Travel/Training FY 1989/90 
No. 89-0177 



* * * 



H. NEW BUSINESS: 

There was no discussion by the Commission 



* * * 



I. CORRESPONDENCE: 

There was no discussion by the Commission 



* * * 



K. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned to go into closed session. 




JjihJ^Jttz 



e&n Caramatti 
ommission Secretary 



Minutes, September 5, 1989, Page 12 



SAN FRANCISCO 
AIRPORTS COMMISSION 




NOV ^ 7 i 



=>v 



MINUTES 



OCTOBER 3, 1989 



IP 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

October 3, 1989 



CALENDAR 
SECTION 

A. 
B. 
C. 



D. 
E. 



AGENDA 
ITEM 



TITLE 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 
September 5, 1989 



ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Award Professional Services 
Contract to Greiner, Inc. 

Resolution Declaring the 
Intention of the Commission 
to Pursue the Issuance of San 
Francisco International Airport 
Revenue Bonds, Series E 

Authorization to Reject and 
Re-issue Request for Proposals 
for Self-Service Luggage Carts 

Award of Contract No. 1558: 
Field Lighting Building No. 1 
Replacement 

Award of Public Lockers and 
Over-the-Counter Baggage 



RESOLUTION 
NUMBER 



89-0178 



89-0179 



89-0180 



89-018' 



Program with City and County 
of San Francisco and San Mateo 
County 

Information Booths at S.F.I. A 



89-0185 



PAGE 
3 

3 



3-5 



5-6 





Storage Lease 


89-0182 


6-8 


6. 


Award of Changeable Message 
Sign 


89-0183 


9 


7. 


Bid Cal 1 : North Terminal 
Shoeshine Stands Lease 


89-0184 


9 


8. 


Report on Adopt a School 







9-10 
10-14 



F. CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

10. Bid Call : Contract No. 1680C 
Parking Garage Restriping, 

Level 2 89-0186 14 

11. Award of Contract No. 1889: 
North Terminal Carpet Replace- 
ment, Phase 3 14 

12. Rejection of Bids: Contract No. 
2130 - International Terminal 
Terrazzo Flooring at Customs 

Waiting Area 89-0187 14 

13. Exhibition Schedule for the 
Period January 1 through 
August 30, 1990 - Proposed 
Copy for Airports Commission 

Brochure 89-0188 15 

14. Travel /Training for Airport 

Representative 89-0189 15 

15. Personnel Actions 89-0190 15 

G. NEN BUSINESS: 15 
H. CORRESPONDENCE: 15 



I. ADJOURNMENT TO GO INTO 

CLOSED SESSION: 15 



Minutes, October 3, 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

October 3, 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Sharon B. Duval 1 
Patrick A. Murphy 

Commissioner Goosby arrived at 9:23 AM. 

Absent: Donald R. Stephens 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of September 5, 1989 were adopted by 
order of the Commission President. 

No. 89-0178 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 

Items 1 through 3 were adopted unanimously. 

1 . Award of Professional Services Contract to Greiner, Inc. 

No. 89-0179 Resolution authorizing the award of 

professional services contract to 
Geiner, Inc. for study to determine if 
aircraft noise impacts on the 
neighboring communities can be abated 
by reconfiguring the Airport's runways 
- $300,000.00. 

Minutes, October 3, 1989, Page 3 



Mr. Lou Turpen, Airport Director, explained that this is in response 
to a request to take a look at modifying the runways in order to 
determine what effect it would have in mitigating noise. This is the 
first phase of a multi-phased effort. The contract is designed to 
terminate after the first phase if the results are not positive and 
the Commission does not wish to proceed. 

Commissioner Duval 1 asked if there were cost estimates for Phases II 
and III. 

Mr. Jason Yuen, Administrator, Bureau of Planning and Construction, 
responded that Phase II will be in the neighborhood of $600,000.00 to 
$800,000.00. Phase II designs the runways and Phase III clears the 
environmental process. 

Commissioner Duval 1 asked when a report could be expected for Phase I. 

Mr. Yuen responded that Phase I will be completed in six months. 

Mr. Turpen added that a commitment has been made to the Roundtable to 
try and complete this phase and report to them by June 1, 1990. We 
anticipate being ahead of that schedule. 

Commissioner Duval 1 said that she was surprised by the cost. She 
asked for an explanation of the relationship between Phase I and 
Phase II in terms of the design of the runway. She said that on the 
one hand it appears that research only will be done with currently 
available resources. On the other hand it appears that some elements 
of design will be considered as well. 

Mr. Yuen responded that some design work will be considered in order 
to determine a budget or cost estimate which will enable the 
Commission to make a decision on whether or not to proceed. Phase II 
will continue the design the runway. The environmental process will 
be taken up in Phase III . 

Mr. Turpen said that there will be an attendant cost to a runway 
configuration which can reduce the noise impacted homes to zero. He 
said that it is important for the Commission to have a rudimentary 
cost benefit option at the end of phase. If the Commission commits 
to Phase II, an additional significant expenditure will have to be 
considered. Once we get past Phase I there is a true commitment to 
move ahead to conclusion. 

Commissioner Duval 1 commented that we are looking at three runway 
configurations. 

Mr. Turpen said that the possibilities were infinite. 

Commissioner Duval 1 commented that staff has not quantified the 
number of alternatives. 

Mr. Turpen added that staff has not quantified for orientation or 
anything else. He said that historic data exists for prevailing 
winds. He has certain instinctive views as to the way this may 
conclude. Some creative options may be available to us and he is 
hoping to be creative in attacking this problem at a minimum cost, a 
minimum disruption and a minimum environmental impact. 

Mr. Turpen said that the question is can we reduce the noise impact. 
If the answer is yes, can we afford to proceed economically and 
environmental ly? 

Mr. Turpen said that there has always been a suggestion that changing 
the runways would go a long way to reducing noise. That question has 
never answered. 

Minutes, October 3, 1989, Page 4 



Commissioner Bernstein asked who designed the present configuration. 

Mr. Turpen responded that the present configuration probably goes 
back to Mike O'Shaughnessy in 1927 and has grown over the years. The 
current runway system was configured in the mid to late 1930s. In 
the 1970s the 28s were extended to accommodate wide body jets, longer 
take-off roles and heavier aircraft. 



Resolution Declaring the Intention of the Commission to Pursue the 
Issuance of San Francisco International Airport Revenue Bonds, Series 
E 

No. 89-0180 

Mr. Turpen explained that under the Lease and Use Agreement the 
Airport finances its capital improvements with the issuance of 
bonds. This item gives the Commission early notice and asks for 
permission to proceed with the development of the Series E bonds. 
Staff will return to the Commission several times on this issue. 

Commissioner Bernstein asked if anything had been done with the 
recommendation that he and Commissioner Murphy submitted regarding 
refinancing the Series D bonds. 

Mr. Turpen responded that staff has concluded that there is some 
merit to the proposal. The Commission will be receiving a staff memo 
within the next day or two which outlines the way staff feels this 
refinancing might best be accomplished. 



Authorization to Reject and Re-Issue Request for Proposals for 
Self-Service Luggage Carts 

No. 89-0181 

Mr. Turpen said that the RFP recently conducted by staff was deemed 
unsuccessful. Permission is requested to re-issue requests for RFPs 
The current contract expires in mid 1990. He said that clearly in 
excess of $1 -mi 1 1 i on per year to provide free luggage carts in the 
Customs arrival area is prohibitive. Staff is looking at some 
options on trying to make that cost a little more acceptable. 

Commissioner Duval 1 said that the Easy Roller proposal was estimated 
at an average annual amount of $765,000.00. She asked if that was 
based on a per unit price. 

Mr. Turpen responded that the per unit price was 80#. 

Mr. Bob Rhoades, Airport Property Management, added that the units 
are based on the master plan projections. 

Mr. Turpen said that Smarte Carte proposes to charge $1.25 per cart, 
or $ 1 0-mi 1 1 i on for a five-year term. 

Mr. Turpen said that there are several options. Sydney, Australia 
has developed a change machine that will accommodate all currencies. 
He said that this option would entail a policy decision for the 
Commission and assumes the Airport will revert to a pay cart system 
in Customs. Staff's proposal assumes a free cart system if the cost 
is reasonable. He said that at this point it is not. 



Minutes. October 3, 1989, Page 5 



Commissioner Duval 1 asked if Easy Roller's extraordinary situation 
will be eliminated so that they will be able to rebid. 

Mr. Rhoades responded that that is a real possibility. He explained 
that Easy Roller had a death in the partnership and the partnership 
then ran into some difficulties. Staff has contacted Easy Roller and 
they expressed an interest in this bid. 

Mr. Turpen said that there are two issues before the Commission. If 
staff can return with a cost effective proposal we would be pleased 
to recommend it. Failing that, the Commission is faced with the 
policy issue of whether or not we can afford to continue this program. 

Commissioner Murphy said that the other policy issue is that Smarte 
Carte is proposing to charge customers $1.25 which he feels is an 
unwarranted increase. 

Commissioner Duval 1 asked if Smarte Carte was proposing to pay a 
minimum annual guarantee of $400,000.00. 

Mr. Rhoades responded that that is their commitment. 



Item No. 4 was put over. 

4. Award of Contract No. 1558: 

Field Lighting Building No. 1 Replacement 

Resolution awarding Contract No. 1558 
to Rosendin Electric, Inc., in the 
amount of $2,979,000.00 

Mr. Tupren explained that this item is being put over pending HRC 
approval . 



Items 5 through 8 were adopted unanimously. 

5. Award of Public Lockers and Over-the-Counter Baggae Storage Lease 

No. 89-0182 Resolution authorizing the award of 

Public Lockers and Over-the-Counter 
Baggage Storage Concession Lease to 
Amlock, Inc. 

Mr. Turpen said that there had been some confusion with this bid and 
asked Peter Nardoza, Asistant Deputy Director, Business and Finance, 
to explained the problem to the Commission. 

Mr. Nardoza said that Mr. Jerry Lee was present to explain the 
protest he lodged against the award of this lease. Mr. Nardoza 
explained that Mr. Arthur Lee went to Room 509 on the appointed day 
aand time with his bid for this lease. He failed to follow the 
instructions that are very clearly indicated no less than three times 
in the bid package that the bid is to be submitted to the Deputy 
Director of Business and Finance. When the Property Management staff 
commenced the bid process and began to open the packages themselves 
Mr. Arthur Lee attempted to hand his bid to the Property Manager. 
The Property Manager rejected the bid because the 3:00 PM deadline 
had passed. Mr. Lee failed to follow the process as outlined in the 
invitation for bids. He said that he believes that that Property 
Manager acted correctly and followed the established process. 

Minutes, October 3, 1989, Page 6 



Mr. Nardoza recommended award of the lease to Amlock, the highest 
responsive bidder. He said that if the Commission decided not to 
accept the lease at this time he urged that all bids be rejected and 
that the lease be rebid. 

Mr. Jerry Lee, representing Mr. Arthur Lee, said that he did not 
dispute the basic facts. On that day Mr. Arthur Lee went into the 
conference room at about 2:50 PM with his bid in hand. He was 
following signs in the Airport at the base of the stairs and at the 
elevator on the 5th floor which directed him to go to the conference 
room. Mr. Lee had been to many bid openings prior to this and was 
ready to submit a bid. Past practices and procedures of the Airport 
Property Management Department was that a Property Manager would 
usually be on hand to accept bids and prior to a bid closing would 
enter the room and ask if there were any more submittals. 

Mr. Jerry Lee claimed that there is no clear cut procedure that 
Property Managers are required to follow. He said that when he 
requested a copy of the written procedures he was told that there 
were no written procedures. He said that the handling of the bid is 
left to the discretion of the individual Property Manager. 

Mr. Jerry Lee said that Mr. Arthur Lee is not a novice in the bid 
process. He has submitted many bids in the past and they have always 
been accepted. He requested that the bid not be awarded to Amlock 
and that Mr. Arthur Lee's bid be accepted. 

Mr. Jerry Lee also told the Commission that the bid package was left 
unopened with Airport staff so no tampering was possible. He again 
requested that Mr. Lee's bid be accepted as submitted. 

Commissioner Bernstein asked why Mr. Arthur Lee did not give himself 
more time if he was uncertain of the language or directions. 

Mr. Jerry Lee said that they have been through this process at least 
a half dozen times and the procedure has been that the Property 
Manager entered the room and asked if any other bids were to be 
submitted. 

Mr. Lee added that the Property Manager was in the room mingling with 
the bidders but left just a few moments before Mr. Arthur Lee 
entered. He said that if there is no clear procedure Mr. Lee would 
have to rely on chance to into the Property Manager. 

Commissioner Duval 1 said that the stated Airport procedure is that 
the bids are submitted to the Deputy Director of Business and Finance. 

Mr. Turpen added that that procedure has been in place since 1984. 

Commissioner Duval 1 asked Mr. Lee if he was aware of that. It is the 
only stated written procedure of which she is aware. 

Mr. Lee said that the fact that it is written into the bid package is 
not at issue. 

Commissioner Duval 1 asked if Mr. Arthur Lee had done that in the past. 

Mr. Lee responded that he did not know. On some occasions he 
submitted it to the Property Manager at the time of the bid. In the 
past, a Property Manager would come into the room and ask if there 
were any more bids . 

Commissioner Duvall said that Mr. Arthur Lee experienced some 
confusion and we need to understand this a little better. 



Minutes, October 3, 1989, Page 7 



Mr. Jerry Lee said that the purpose of the bid is to get all bidders 
to make a fair and honest bid for the benefit of the City and that is 

al 1 that they are asking. 

Mr. Jerry Lee said that the Commission should have received a copy of 
a letter written to the Director. 

Mr. Nardoza said that while it may have been true in the past that 
bidders were allowed to submit their bid to the Property Manager, we 
have not allowed that practice since 1984. For the past five years 
every invitation for bid has been very specific as to where the 
package must be submitted. There is a specific process for bid 
packages being accepted, stamped in and brought to Room 509 for the 
bid openi ng. 

Commissioner Bernstein asked Mr. Andrew Colvin of Feldman, Waldman 
and Kline if he wished to address the Commission. 

Mr. Colvin said that his firm represents Amlock in this matter. He 
told the Commission that he does not believe that there is any 
ambiguity in the invitation to bid as to where and how the bid should 
be submitted. He said that there was a pre-bid meeting on May 25, 
1989 on this matter and Mr. Gonzalez, the Property Manager who 
oversaw this process, was very explicit about the time limit. Mr. 
Gonzalez indicated at that meeting that he would be on the phone up 
to 3:00 PM calling the time so that everyone would know when the bids 
were closed. Mr. Gonzalez was in the room only a very short period 
of time setting up an easel. He then left the room and when he 
returned he announced that it was 3:00 PM and the bidding was 
closed. It was at that point that Mr. Lee attempted to submit his 
bid. 

Mr. Colvin said that if Mr. Gonzalez had walked into the room and 
said that no bids had been received, perhaps a different bid might be 
submitted. Knowing how many bids are going to be submitted is an 
important piece of information for bidders and might effect the way 
they bid. Accepting bids in the bid room creates the potential for 
that type of problem. Mr. Colvin asked that the staff recommendation 
be accepted and that Amlock be awarded the lease. He said that it is 
likely that Amlock would challenge any attempt to throw out the 
bids. Mr. Colvin submitted a letter to the Commission as well (see 
attached) . 

Mr. Don Garibaldi, Airports General Counsel, told the Commission that 
the legal staff examined this issue and based on the facts as given 
to them, it appears that the bid was received after the time 
specified in the bid invitation and cannot be accepted. The 
Commission has three alternatives, to accept Mr. Lee's bid, to reject 
Mr. Lee's bid as having been late and award the lease to Amlock, or, 
to reject all bids and rebid the lease. 

Mr. Turpen felt that staff conducted the bid properly and recommended 
the lease be awarded to Amlock. Staff goes to great lengths to try 
and avoid confusion in the bidding process. He said that it is 
unfortunate that a potential bidder was confused about the process 
but to throw out the bids and re-bid this lease would be unfair to 
the other bidders. 

Commissioner Duvall said that it is her understanding that the 
practice has not been such that it would lead potential bidders to 
expect that even though the stated regulation says one thing, that 
the practice would lead them to expect something else. The 
proceduresin place are very clear and have been followed for the last 
five years . 

Commissioner Bernstein said that he is inclined to accept the bid. 
Minutes, October 3, 1989, Page 8 



Award of Changeable Message Sign 

No. 89-0183 Resolution to award the contract to 

the only bidder, Abbett Electric 
Corporation. Contract price is 
$150,456.00. 



Bid Call: North Terminal Shoeshine Stands Lease 

No. 89-0184 Resolution authorizing Director to 

accept bids for the North Terminal 
Shoeshine Stand Lease. 



Report on Adopt a School Program with City and County of San 
Francisco and San Mateo County 

No. 89-0185 

Mr. Art Pulasky, Airport Labor Coalition, said that they are familiar 
with and have observed the Adopt a School Program from its inception 
several years ago. He said that the Coalition feels that it is an 
outstanding program and will have a positive effect on all concerned. 
The Coalition values the kind of partnership and cooperation with the 
Airport that will make this program a success. He felt that this 
type of involvement in the community is positive for the Airport in 
its community relations. He thanked Dennis Bouey for his outreach 
with the labor unions in this effort. Mr. Bouey actively sought to 
engage the support of the unions and created a good example for an 
effective and constructive approach to getting community support on 
these issues. 

Mr. Pulasky said that when the unions met last week and discussed 
this issue they raised the concern that they hoped the participants 
would be representative of the racial mix and age. He said that 
having talked with Sharon Niterhouse, the Director of the program, 
they are confident that that will happen. 

Mr. Pulasky thanked and commended the Commission for their efforts in 
this program and looked forward to working with them. 

Ms. Lynn Ishihara, Manager of Business Involvement Programs for San 
Francisco School Volunteers, on behalf of San Francisco schools and 
in conjunction with Nora Youst from So. San Francisco Schools and 
Sharon Niterhouse from the San Mateo County Office of Education, 
encouraged the Commission's support for the Airport Student Awareness 
Program. She said that this program will enable 14 students from 
high schools in communities surrounding the Airport to have an 
indepth first-hand look at the Airport and Airport careers. Students 
who would not otherwise have that opportunity. She said that each of 
her counterparts in their respective communities have met with the 
principals of these schools and have specifically asked them to 
identify students who represent the true student body of that school, 
both in sex and ethnic representation. She said all of the 
principals they spoke with are excited and enthusiastic about the 
program, recognizing that experiential programs are invaluable 
because they make the connection between classroom learning and the 
working world. 

Ms. Ishihara said that the principals are also excited about this 
program because in years two and three these same students are going 
to be matched with Division, Bureau and Section heads who will 
provide a more individualized learning opportunity. 

Minutes. October 3, 1989, Page 9 



Ms. Ishihara said that they support this program and welcome the 
opportunity to work with the Airport. They view this as a powerfjl 
learning experience for their students and an opportunity for their 
communities to strengthen ties with the Airport. 

Commissioner Goosby thanked Mr. Pulasky for his comments and was 
grateful for his concurrence. He also thanked Mr. Bouey for 
developing a communication between the Coalition and the Airport. 

Commissioner Goosby suggested that the final session for these 
students include a component that will acquaint them with Civil 
Service procedures. He also felt that City College should offer this 
information to every Senior. He suggested that City College be 
included in this program so that they could acquaint these students 
with the relevant courses they offer. 

Commissioner Duval 1 agreed that the students should be made familiar 
with Civil Service procedure. 

Commissioner Duval 1 asked if other City agencies were participating, 

or, if this is done in conjunction with private industry. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations and 
Maintenance, responded that the Airport is the pilot program and 
total contact will be at the Airport. He said that staff has begun 
discussions about a Springtime program because there is a concern 
about continuity. City College has already been contacted about 
participating. Information will be given on how to apply to Civil 
Service as well as how to apply to union apprenticeship programs. He 
said that the idea is not only to show what is available at the 
Airport but also how to take advantage of it and the options 
available to them. He said that we are not just adopting a school, 
we are adopting these children as part of the community. 

Mr. Bouey also said that while we are looking for gender and ethnic 
diversity, we are also looking for students who don't have the 
opportunities that other children have. Ne are looking for students 
who are disadvantaged in the hope that this might give them the break 
they need to achieve success in life. 

Commissioner Duval 1 said that five days is a start but it's not 
alot. If, however, this is in the context of efforts of other 
agencies and industries then it gives us more substantial contacts. 
She said that this is a wonderful opportunity for us to begin a 
substantive outreach. 

Commissioner Bernstein said he was delighted with the program. 



No action was required on Item No. 9. 

9. Information Booths at S.F.I.A 

Report on the establishment of Five 
(5) information booths in the lower 
level baggage claim areas of the 
terminals. These booths would be 
operated by personnel who would 
provide airport passengers with 
impartial information on ground 
transportation, on services and 
facilities within the Airport and 
general information for visitors to 



Minutes, October 3, 1989, Page 10 



San Francisco. This program would 
cost approximately $1 -mi 1 1 i on each 
year to operate. 

Mr. Turpen said that the Commission is aware of the concern in 
getting accurate and objective information to people arriving at 
SFO. He said that with the continuing competition in the ground 
transportation arena, options for passengers are increasing. He felt 
that a mechanism for reaching arriving passengers in terms of welcome 
packages or brochures might also be appropriate. The establishment 
of five booths in the baggage claim areas would be satisfactory to 
our needs. 

Commissioner Goosby asked if these five booths would be in addition 
to the Traveler's Aid Booths already in operation. 

Mr. Turpen said that they would be additional. These booths would 
primarily disseminate ground transportation information as specified, 
but would not necessarily be limited to that type of information. He 
thinks it's a good program in terms of personalizing the interaction 
of the City with arriving passengers. 

Commissioner Duvall asked if multi-lingual signs were in place in 
international arrivals. 

Mr. Turpen responded that the Commission opted for international 
symbols years ago. We also have a multi-lingual brochure. 

Mr. Sheldon Fein, Landside Operations, responded that international 
symbols were selected because multi-lingual signs would take up an 
inordinate amount of space. 

Commissioner Goosby asked where the multi-lingual brochures are 
avai lable. 

Mr. Fein responded that the brochures are provided through community 
services . 

Mr. Ron Wilson, Director of Community Affairs, added that Traveler's 
Aid also provides the multi-lingual brochures. 

Mr. Turpen said that at one time a mailing was also done to travel 
agencies but that was not particularly effective. He said that the 
method of distributing the brochures into the hands of those 
passengers who want and need them has not been as good as it could 
be. These information booths will correct that deficiency. 

Commissioner Goosby asked how this all came about. 

Mr. Turpen responded that the Commission had expressed some concerns 
about this years ago. Staff approached the Commission at that time 
with a number of options, but all were rejected. This will give us a 
physical location in which to implement and bring together programs 
which are existent but not necessarily focused. He said that Greig 
Harvey, the Airport's transportation consultant, has made some 
recommendations as well. 

Commissioner Goosby thought that if we were going to spend $1 -mi 1 1 ion 
we should seriously consider charging for carts in Customs. He felt 
that we should begin with one booth in the International Terminal and 
add additional booths once we have determined the need exists. 

Mr. Turpen told Commissioner Goosby that O'Hare had a trial program 
in the 1970s. He said that even though the program was well 
received, it was eventually abandoned. 

Minutes, October 3. 1989, Page 11 



Mr. Turpen said that a number of needs have been identified. We must 
now focus on how to get that information to passengers. He believes 
that these booths will provide the appropriate mechanism. Staff will 
proceed with a phase-in approach if the Commission wishes. 

Commissioner Goosby agreed with the concept if it will be utilized by 
passengers. He did not want to expend funds only to have the booths 
go unused. 

Mr. Fein told the Commission that his division has received formal 
requests from the van industry to provide counters which they would 
be willing to man. The taxi industry has made similar requests. 
These booths would satisfy those requests and provide information 
without providing a competitive edge. He said that LAX has had the 
same system for the last two or three years. 

Commissioner Murphy asked if this was going out to bid. 

Mr. Turpen responded that this is to inform the Commission and seek a 
concensus. Staff will request permission to go out for an RFP at a 
later date. 

Commissioner Murphy hoped that possible conflicts of interest will be 
considered for potential bidders. 

Mr. Turpen said that staff approached the Commission with a proposal 
in 1982 or 1983. The Commission decided at that time that the need 
was insufficient. This is to determine if the Commission has any 
interest at all in proceeding. 

Commissioner Duval 1 asked if the Passenger Survey provided any 
requests for this type of service. 

Mr. Turpen responded that the survey was very good overall. He said 
that the ratings for facilities and food service went down. 

Commissioner Duval 1 said that the survey is simply an objective 
questionaire and does not offer an opportunity for passengers to 
volunteer suggestions. She said that when she travels through 
foreign airports she is particularly grateful when clearer direction 
is available. She would like to see better information at the 
Airport. 

Commissioner Duvall agreed with Commissioner Goosby's suggestion to 
start with a booth in the International Terminal. 

Mr. Turpen said that he will take a look at a phase-in program where 
the Commission can opt to add more booths. He added that this will 
be a request for RFPs rather than bids. He said that objectivity in 
the operation of these booths is critical. 

Commissioner Goosby said that objectivity, information and use will 
make the $ 1 -mi 1 1 i on expenditure worth while. 

Commissioner Bernstein asked Mr. Al Hall if he wished to address the 
Commi ssion. 

Mr. Al Hall, representing the Cab Drivers Association of San 
Francisco, said that his Association presented proposals to the 
Airport's Landside Operations staff with regard to information booths 
for taxi services. Their areas of concern involve the lack of 
accurate signage at the Airport directing passengers seeking taxicabs 
or ground transportation service to taxicabs. He said that signage, 
with the exception of labels on the exit doors saying "Taxi", is 

Minutes, October 3, 1989, Page 12 



virtually non-existent. There is a display cabinet for bus services 
listing rates to the downtown area. There is a notation above that 
which indicates that taxis are available on the outer curbs, lower 
level. Information signs or display cabinets for taxis are 
non-exi stent. 

Mr. Hall said that letters of objection have been sent to the 
Landside staff on a recent recommendation. Citing a passage from the 
minutes of the Airports Commission's April 18, 1989 meeting, Mr. Hall 
said that the Airport was reimbursing SuperShuttle for 44 aluminum 
cabinets which were installed in the downtown area. These cabinets 
contain information which direct passengers to transportation 
services departing from the upper level. He said that a new visitor 
to San Francisco leaving the baggage claim area and encountering a 
sign directing them upstairs to ground transportation will not 
question that sign. That passenger may be looking for a taxi but 
having moved luggage upstairs, won't turn around and go back 
downstairs. Mr. Hall said that when the taxi industry asked that 
information on taxi services be included within those 44 displays 
they were told that that was not part of the plan. He said that 
since SuperShuttle was reimbursed for those display cabinets, 
information on taxi services should be included. 

Mr. Hall said that they have also had complaints with regard to 
misinformation by current operators of information booths, 
specifically the Associated Limousine booths, about cost and availa- 
bility of taxi services and solicitation of services. Traveler's Aid 
is not providing accurate information either. He said that he has 
never seen a printed brochure. He once posed as an airline passenger 
and went to Traveler's Aid to ask about available transportation. He 
said that the last possible form of transportation suggested was a 
taxicab, and then only after asking if such service was available. 

Mr. Hall said that if the booths are operated properly it will be an 
advantage to San Francisco. He offered the Taxi Association's 
assistance for preparation of an unbiased and complete body of 
i nformation . 

Mr. George England, driver for Luxor Cab and charter member of the 
Cab Drivers of San Francisco, said that they are striving to improve 
the taxi business in San Francisco not only for the drivers, but for 
the company and the public as well. He feels that there is potential 
to expand the business but they continue to be thwarted in most 
areas. There appears to be a great deal of discrimination at the 
Airport. He said that it used to be commonplace to make one or two 
trips to the Airport a day, but now it's only once or twice a week. 

Mr. England said that for years they have tried to promote a 
rideshare program. People who want to share a cab to downtown San 
Francisco should be able to do it. The cost and the procedure should 
be clear. He said that there is a program but it's never been 
implemented. 




Minutes, October 3, 1989, Page 13 



Mr. England said that taxicabs have been providing a good service 
long before the newcomers came on the scene. He said that if the cab 
companies were in the business of providing cab service to the public 
rather than renting cabs to drivers they would take a different 
approach. He said that this issue must be addressed openly and he 
would be glad to offer his input. 

Commissioner Duval 1 asked that an information booth be considered for 
the North Terminal as well. 

Mr. Turpen said that staff will come back with a structured proposal. 

Commissioner Goosby wants staff to look at the whole picture. He 
does not want the advantage weighted towards one transportation 
service over another. He wants a fair and equitable situation. 

Mr. Hall said that he would be glad to come back at a later date with 
a life-size example of the signs. 

Commissioner Bernstein asked Mr. Hall to present the photos of those 
signs to the Commission Secretary. 

Mr. Turpen said that staff will develop a time line and a phased 
approach to the Commission. He said that he understands that the 
Commission endorses the concept in an amended fashion. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The Consent Calendar, with the exception of Item No. 11 which was put 
over, was adopted unanimously. 

10. Bid Call : Contract No. 1680C 

Parking Garage Restripinq, Level 2 

No. 89-0186 Resolution to approve the advertising 

of bids to restripe parking stalls and 
rechannel traffic circulation on Level 
2 of the parking garage. This project 
will increase the number of parking 
stal Is by 114, including 14 
handicapped parking stalls. 



Item No. 11 was put over pending HRC approval. 

11 . Award of Contract No. 1889 : 

North Terminal Carpet Replacement, Phase 3 

Resolution awarding Contract No. 1889 
to Consolidated Flooring Services in 
the amount of $745,108.00. 



12. Rejection of Bids : 
Contract No. 2137 
International Terminal - Terrazzo Flooring at Customs Waiting Area 

No. 89-0187 

Minutes, October 3, 1989, Page 14 



13. Exhibition Schedule for the Period January 1 through August 30, 1990 
- Proposed Copy for Airports Commission Brochure 

No. 89-0188 



14. Travel /Training for Airport Representatives 
No. 89-0189 

15. Personnel Actions 

No. 89-0190 Resolution, in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



G. NEW BUSINESS: 

There was no discussion by the Commission. 



H. CORRESPONDENCE: 

There was no discussion by the Commission 



J. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:05 AM. 



Jean Caramatti 
Commission Secretary 



Minutes, October 3, 1989, Page 15 



Feldman 
Waldman 
& Kline 

A PROFESSIONAL CORPORATION 

Attorneys at Law 



MURRV ) WALDMAN 
LELAND R SELNA, IR 
MARC H MONHEIMER 
DONALD H KANT 
MICHAEL L KORBHOLZ 
HOWARD M WEXLER 
JEFFREY W SHOPOFF 
PATRICIA S MAR 
KENNETH W PNES 
LUC1NDA LEE 
RANDALL DICK 
DENNIS ) WHITE 
CHARLES D CHALMERS 



GEORGE V HARTMANN 
GEORGE G WE1CKHARDT 
MICHAEL K BEYER 
GERALD A SHERW1N 
ROBERT E WHITE 
PAUL ) DION 
VERM S BOTHWELL 
L J CHRLS MARTtNlAK 
ANDREW M COLVTN 
MICHAEL ) McQUILLER 
JEFFREY I MARGOUS 



HAROLD F KOEGLER 
MARTHA J SHAVER 
NICK A BOOOROOKAS 
LYNN A ALTSHL'LER 
STEVEN K. DENEBEIM 
LAURA GRAD 
CAROL R CAINE 
KAREN H HOROOAS 
MARK A SEJLLIN 
JULIE JONES 
HELEN H KANC 
t ELLSE GALTtER 
HUGO A ZLA 



CAROL SUREAU 
MAUREEN A SHEEHY 
JOHNP HAYS 
LAURENCE P TONER 
GARY ) SCHEFSKY 
MICHAEL B ADLER 
ARMANDO MENDEZ 
ADELA CARRASCO 
MATTHEW N TUCHOW 

at COLMSCL 
JESSE FELDMAN 
ALLEN E KLINE 
RICHARD L JAEGER 



TWENTf -SEVENTH FLOOR RUSS BU1LDINC 

235 MONTGOMERY STREET 

SAN FRANCISCO CALIFORNIA 94104 

TELEPHONE (415)9811300 
TELEX 650 223 3204 
FAX (415) 394-0121 



October 2, 1989 



Stockton office 
sferry building 
h*-i4e west weber avenue 
stockton, california 95202 

(209) 94J-20W 



Airport Commission 
City and County of San Francisco 
San Francisco International Airport 
San Francisco, CA 94128 

Re: Lease for Public Lockers and 

Over-the-counter Baggage Storage 

Dear Honorable Commissioners: 



This office represents Amlock, Inc., the successful 
bidder for the lease of public lockers and over the counter 
baggage storage in the Airport Terminal Complex in San Francisco 
International Airport. Sealed bids for the lease were received by 
the Director of the Airports on behalf of the Airports Commission 
on August 30, 1989. 

We understand that a party which did not submit a bid, 
Metalwood Corporation (in-organization) ("Metalwood") has 
submitted a letter in which it seeks to "protest the procedures 
and rejection of a bid package." 

We note at the outset that it would not be appropriate 
for Metalwood to protest at this time the procedures of the bid. 
A pre-bid conference, in which the bidding procedures were gone 
through in careful detail, was held on May 25, 1989. We believe 
that a representative of Metalwood, the author of the letter 
written on behalf of Metalwood, was present at the pre-bid 
conference. If Metalwood had any objection to the bidding 
procedures, we submit that was the time to state such an 
objection. It is untimely to object to the final and advertised 
procedures after the bidding has been completed. Thus, we think 
that the only question before the Commission is whether Metalwood 
did, in fact, comply with the bidding procedures. 

The invitation for bids dated August 1, 1989 is quite 
explicit on the procedure for the submission of bids. Section III 
of the invitation includes Instructions to Bidders. Item B 
thereof, Submission of Bids, indicates: 



sldman 
7aldman 
i Kline 

torneys at Law 



Airport Commission 

City and County of San Francisco 

October 2, 1989 

Page 2 



This bid form must be submitted with completed 
Questionnaires and Bid Bonds in a sealed envelope 
marked "Public Lockers and Over-the-Counter 
Baggage Storage Lease". The envelope must be 
addressed and delivered to: "Deputy Director of 
Airports, Business and Finance, P.O. Box 8097, 
5th Floor, International Building, San Francisco 
International Airport, San Francisco, California 
94128", at or before 3:00 p.m., on Wednesday, 
August 30, 1989. 

That same section also provides that: 

Bidders should examine the existing facilities 
and become familiar with the area and present 
operation and the operation of the Airport . . . 
No bid received after the time fixed for 
receiving them will be considered. 

Thus, we think that there is no ambiguity as to the 
responsibility of a potential bidder. All bids had to be 
delivered in a timely fashion, at or before 3:00 p.m. on 
August 30. This, clearly, was an absolute deadline. Certainly it 
was the potential bidder's responsibility to ensure that the bid 
was filed in conformity with the bid requirements. 

If there was any question in Metalwood's mind, however, 
there were several steps Metalwood could have taken. For example, 
Metalwood could have heeded the advice given to all potential 
bidders at the pre-bid conference held on May 25, 1989. At that 
conference, the procedures for the submission of bids, and the 
strict adherence to a 3:00 p.m. deadline, were gone over in clear 
and explicit detail. 

Secondly, as the invitation to bid and several other 
sources make clear, Airport staff was available to review bids 
beginning at 10:00 a.m. on Wednesday, August 30, 1989. Amlock 
took advantage of this procedure and as part of the review 
received confirmation as to the time and the method for filing its 
bid. Even if Metalwood did not wish to avail itself of this 
opportunity, it was not only free to inquire of the Airport staff 
on the proper method for submitting a bid, but it was incumbent 
upon Metalwood to obtain this information itself. 



"Iman City and County of San Francisco 

ft October 2, 1989 

Jine Page 3 

AI COUOiATlON 

:ys at Law 



Finally, we note that another bid which was submitted in 
a timely fashion came from Canada. It is ironic that a party 
thousands of miles away could get its bid in on time while 
Metalwood had this supposed difficulty. 

We note that the August 31, 1989 letter from Metalwood 
to Deputy Director Angela Gittens makes, essentially, two 
arguments as to why its bid should be accepted and considered. 
The first is that while it did not comply with the terms of the 
bid, Metalwood claims to have complied with past practices and 
procedures allowed by various property managers at the Airport. 
We believe that this assertion is factually incorrect. We are not 
aware of any past practices or procedures which require a 
representative of the Property Management Department to be present 
in the bid room to accept bids up to (or even after) the time 
announced as the time for the opening of bids. If that is the 
procedure which the Airport wished to follow, then the bid 
document could have stated it. Given the exacting terms of the 
bid document, we do not believe it is beneficial to incorporate 
other practices or procedures which may have been used in the 
past. Moreover, this argument ignores the fact that prior to this 
time of the attempted submission of a bid by Metalwood that the 
representative of the Property Management Department, Ronald 
Gonzales, announced to all present that it was past 3:00 p.m. and 
the bidding procedure was closed. (This procedure comported 
precisely with the procedure announced by Mr. Gonzales at the 
May 25, 1989 pre-bid meeting.) Only then did the representative 
of Metalwood attempt to submit a bid package. 

The second argument made by Metalwood is that fairness 
and equity dictate that the bid be considered at this time because 
it will benefit the City to get the most bids to gain the highest 
revenue. We believe that fairness and equity requires that the 
bid not be accepted. The whole point of competitive bidding is to 
have all participants play by the same rules, giving no one an 
advantage. If this system is to work, the rules with respect to 
the submission of bids must be strictly enforced. Information as 
to the number of bidders, in itself, would give a substantial 
advantage to Metalwood or any other bidder. If the representative 
of the Property Management Department had entered the bid room and 
announced that there were no bids submitted, who is to say that 
the same bid package would have been submitted by Metalwood or by 
any other potential bidder. For the bid process to have any 
integrity, the rules for the submission of bids must be strictly 
observed. 



ldmari Airport Commission 

r o1^man City and County of San Francisco 

3 t^} ld11 October 2, 1989 

. Kline Page 4 

IUJOKAI CO*«D*ATK>\ 

srneys at Law 



We also note that we do not believe it is the case that 
the Metalwood bid was in the hands of the Property Management 
Department and remained there from a time prior to the time the 
other bids were opened. We accept Metalwood 's assertion that the 
bid had been left with the Property Management Department unopened 
since it was submitted. We believe, however, that physical 
possession of the relevant bid was not taken until after the bids 
were opened. We believe, further, that the representative of 
Metalwood left the bid room on August 30 with the rejected bid 
envelope for a matter of at least several minutes, and for that 
reason the submitted bid would be unreliable. Another reason for 
strictly enforcing bidding procedures is to avoid these types of 
thorny questions. 

Of course, if Metalwood 's position were sustained, it 
would not be a matter of simply comparing the Metalwood bid to the 
other bids. Rather, assuming the Commission were to sustain the 
position (and this were upheld after any challenges) , we believe 
that the specifications for the bid would have to be re-written 
and the entire lease would have to be re-bid. Otherwise, there 
will be a tremendous disadvantage to the bidders who submitted 
bids in a timely fashion. Also there is no guarantee that the 
same bidders would submit new bids or that the amount of the 
ultimate bid would be higher than the bid currently submitted. 

The rules of competitive bidding have been developed to 
produce the best result for the City on terms that give all 
parties an equal opportunity. Amlock, Inc. abided by those rules. 
For this system to have the desired result, not only in this 
instance but in general, those rules must be strictly enforced and 
those who do not abide by the rules should not be excused or 
rewarded. 



Very truly/ yours , 



14^. 



Andrew M. Colvin 



AMC:pjh 
5243\L94.doc 

cc: Louis T. Asher 






SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS D£?T. 
DEC 4 1983 

^H.\l FRAWUi^CO 



MINUTES 



OCTOBER 17, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

October 17, 1989 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 



CALL TO ORDER: 

ROLL CALL: 

ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

1. Resolution Aprpoving Response to 
Comments on Master Plan Working 
Paper 'C. Resolution also 
Authorizes Staff to Prepare Final 
Draft of Master Plan for 

Commission Approval 89-0191 2-4 

2. Award of Contract No. 1558: 
Field Lighting Building No. 1 

Replacement 89-0192 4 

3. Authorization to Receive Bids 
for the International and North 
Terminal Cigarette Vending 

Lease 89-0193 5 



E. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

4. Award of Contract No. 1889: 
North Terminal Carpet Replace- 
ment, Phase III 89-0194 

5. Award of Contract No. 2132: 
Private Branch Exchange 

Equipment 89-0195 

6. Resolution, in Accordance with 
the Requirements of San Francisco 
City Charter Section 3.501, Rati- 
fying and Approving Certain 
Personnel Actions Taken by the 
Director of Airports 89-0196 



NEW BUSINESS: 
CORRESPONDENCE 



I. ADJOURNMENT TO GO INTO CLOSED 

SESSION: 



Minutes 

of the 

Airports Commission Meeting 

October 17, 1989 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Patrick A. Murphy 

Absent: Donald R. Stephens 

Sharon B. Duval 1 



C. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



D. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were adopted unanimously. 

1 . Resolution Approving Response to Comments on Master Plan Working 
Paper 'C. Resolution also Authorizes Staff to Prepare Final Draft 
of Master Plan for Commission Approval. 

No. 89-0191 

Mr. Lou Turpen, Airport Director, told the Commission that about 400 
copies of Working Paper 'C were distributed to interested parties 
who had requested it for review and comment. The document before the 
Commission is a compilation of written and verbal comments received. 
This item requests permission to distribute the response to Working 
Paper C and at the same time to move forward with the development 
of the final draft. 

Commissioner Bernstein asked Mr. Curt Holzinger if he wished to 
address the Commission. 

Mr. Kurt Holzinger, member of the Airport Community Roundtable and 
the Board of Supervisor's Airport Noise Committee, wished to address 
the Commission as a private citizen rather than as a member of either 

Minutes, October 17, 1989, Page 2 






Committee. He said it was his understanding that today's action will 
approve distribution of the document, not approval of the document 
itself. He understood that as the process continued there would be 
opportunity for public review prior to adoption. He said that in 
speaking with Mr. Costas it appears that some of the Committee's 
concerns were incorporated in this document, but as he has not yet 
read it he is unwilling to make further comment. He was pleased that 
some of their concerns were addressed, particularly the acknowledge- 
ment of the noise problem that has existed in San Francisco since 
early 1987. He hoped that the master plan and EIR would address that 
issue and work toward a real solution to the noise problem. 

Mr. Holzinger pointed out that the master plan is the document where 
many forecasts are made regarding gates, passengers, etc. but that 
some forecasts that are essential for a good master plan and a 
thorough EIR are missing. His group has commented on this several 
times before and he hoped that the document approved for distribution 
today will address this issue. He felt that the total number of 
operations should be forecast as well as the fleet mix. These 
forecasts can and have been done and should be incorporated into the 
final document. 

Mr. Tim Treacy, Chairman, San Francisco Airport Noise Committee, said 
that when the hearing process was conducted for Working Paper 'C 
they were under the impression that the documentation before the 
Commission today would be provided to the Committee so that they 
could ascertain if it correctly reflected the views that were 
presented at the meeting. He said that this is a problem that the 
Committee has been having. They were not provided with a copy of the 
document. He said that he was not clear as to what opportunity they 
will have to comment on the document in the future, but they will 
have to 1 i ve wi th it. 

Mr. Treacy was also displeased with the procedure to distribute 
Commission agendas. He told the Commission that agendas for 
Commission meetings are prepared only a day or two before the 
meetings. He received the agenda for this meeting yesterday. He 
said that he has no opportunity, as an interested and affected 
citizen, to review the items that are on the agendas. These items 
should be made available to the public. He said that he is disturbed 
by the process and would hate to see it continue. He suggested an 
evaluation of the process be made. 

Mr. Treacy said that his Committee has been interested in this item 
for the past several years and throughout this entire process they 
have been told that no consideration was being given to expand or 
reconfigure the runways. Contrary to this, a Federal report released 
this summer indicated that Airport staff and the FAA have, been 
working for up to two years on a runway addition, expansion and 
reconfiguration plan. This plan has been published by the FAA. He 
said that he does not know why it has not been included in the master 
plan process. Mr. Treacy said that according to the FAA, this plan 
is designed solely to enhance capacity and has nothing to do with 
noise abatement. He said that his Committee has also recently 
discovered through documentation obtained through the FAA, that since 
1986 the FAA has utilized a preferential runway 1 program designed to 
abate noise on the Peninsula, resulting in a shift in noise to San 
Francisco. This is attested to in Airport reports showing the data 
from the noise monitors and the percentage of departures that have 
gone from runway 28 to runway 1. He said that in excess of 937. of 
departures are from runway 1. This noise abatement procedure for the 
Peninsula is resulting in air traffic over San Francisco's 
residential areas. Mr. Treacy said that it is imperative that this 
problem be addressed and resolved before a master plan is adopted. 



Minnt-oc rirtohor 17 1 QRQ PsdP T 



Commissioner Bernstein asked when the agenda is sent out. 

Jean Caramatti , Commission Secretary, responded that the calendars go 
out on Thursday afternoon. 

Mr. Turpen added that the calendars go out simultaneously with the 
Commission's copies. 

Mr. Treacy said that it takes one or two days to receive them. 

Mr. Turpen asked how many copies are sent out. 

Ms. Caramatti responded that 200 copies of the calendar are mailed. 

Commissioner Goosby said that the School Board makes copies available 
in the office as well. He suggested that the Airport make the same 
arrangement. He recommended a centrally located drop point in San 
Franci sco. 

Mr. Turpen said that these issues don't sneak up. Many of the items 
the Commission considers are in process for a some period of time. 
The Airport has always entertained calls either through the 
Commission Secretary or through his office with regard to items 
scheduled for the agenda. He said that the agenda is set two Mondays 
before a Commission meeting. 

Commissioner Goosby said that this is a public body and everyone must 
be treated the same. The Airport should facilitate the dissemination 
of information, not make it difficult. The messenger should drop off 
calendars at some centrally located point, possibly City Hall. 

Mr. Treacy said that City Hall is an acceptable location. 

Mr. Turpen said that he would be happy to make the accommodation. 
For the record he said that anyone who has ever wanted to track an 
item has picked up the phone and called. In this particular 
situation Mr. Treacy is concerned about the timing. He said that he 
has personally told Mr. Treacy that he can call him on any issue at 
any time. 

Commissioner Goosby understood but felt that the Airport is 
peculiarly vulnerable to criticism. 

Mr. Turpen said that he will be happy to make copies available. 

The Commission Secretary was directed to find a suitable location and 
provide 25 calendars for each meeting. 

Commissioner Goosby hoped that reference will be made to -any impact 
on noise effected areas and the feasibility of any runway 
reconfiguration. He also hoped that a general reference will be made 
with regard to environmental impact and the endangered species laws. 
He understood that it will be incorporated into the final paper. 



2 . Awa?-d of Airport Contract No. 1558: 

Field Lighting Building No. 1 Replacement 

No. 89-0192 



Minutes, October 17, 1989, Page 4 



Authorization to Receive Bids for the International and North 
Terminal Cigarette Vending Lease 

No. 89-0193 



E. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

4. Award of Airport Contract No. 1889 : 

North Terminal Carpet Replacement, Phase III 

No. 89-0194 



5. Award of Contract No. 2132 : 

Private Branch Exchange Equipment 



No. 89-0195 



Resolution to award contract to AT&T 
in accordance with City and County 
policy regarding the purchase of 
Private Branch Exchange Equipment. 



6. Resolution, in Accordance with the Requirements of San Francisco City 
Charter Section 3.501, Ratifying and Approving Certain Personnel 
Actions Taken by the Director of Airports . 

No. 89-0196 



F. NEN BUSINESS: 

There was no discussion by the Commission 



G. CORRESPONDENCE: 

There was no discussion by the Commission 



I. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:17 AM to go into closed session. 



/Jean Caramatti 

' Commission Secretary 



Minutes, October 17, 1989, Page 5 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

BAN FRANCISCO 

piiBijn i mo/iDv 



MINUTES 



NOVEMBER 7, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

November 7, 1989 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. ADOPTION OF MINUTES: 

Regular meeting of 

October 3, 1989 89-0197 3 

D. SPECIAL ITEM: 

1. Election of Officers 89-0198 3 

E. DIRECTOR'S REPORTS: 

2. Earthquake Recovery Status 

Report - Verbal Report 3-5 

F. ITEMS INITIATED BY COMMISSIONERS: 

Commendation to Airport Community 

- October 17, 1989 Earthquake 89-0199 5 

G. ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

3. Approval of Final Draft of 
Airport Master Plan as a Basis 
for Developing the Environmental 

Impact Report 89-0200 5-12 

4. Aurhorization to File Application 
for Federal Financial 

Assistance 89-0201 13 

5. $466,005.00 Supplemental Appro- 
priation for Operating Expenses 

Related to the Earthwuake 89-0202 13 

6. Bid Call : Contract No. 2259: 

Area Lighting, Plot 99 & 100 89-0203 13 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

7. Declaration of Emergency: 
Contract No. 2260 - Emergency 

Water Main Repairs 89-0204 13 

8. Declaration of Emergency: 
Contract No. 2262 - Emergency 
Earthwuake Damage Repair - 

Airfield 89-0205 13 

9. Declaration of Emergency: 
Contract No. 2263 - Emergency 
Earthwuake Damage Repair - 

Terminal 89-0206 14 

10. Declaration of Emergency: 
Contract No. 2264 - Emergency 
Earthquake Damage Repair - 

Airport Support Buildings 89-0207 14 

11. Declaration of Emergency: 
Contract No. 2265 - Emergency 
Earthquake Damage Repairs - 

Groundside 89-0208 14 

12. Declaration of Emergency: 
Contract No. 2266 - Emergency 

Utilities Repairs 89-0209 14 

13. Bid Call - Contract No. 2258: 
Emergency Pavement Repairs - 

1990 89-0210 14 

14. Award of Contract No. 2172R: 
Airport Auto Shop Replacement 

of Leaking Hoists 89-0211 15 

15. Award of Contract No. 2163R: . 
Airport Fuel System Repair and 

Related Work 1989-1990 89-0212 15 

16. Resolution Approving the Sublease 
of a Portion of TWA's Air Freight 
Facility Located on Plot #3 from 
Trans World Airlines, Inc. by 

West Coast Fueling, Inc. 89-0213 15 

17. Resolution Approving Reimburse- 
ment of Temporary Relocation 

Costs for Dollar Rent-a-Car 89-0214 15 



I. NEW BUSINESS: 

Independent Hearing Officer for 

DHL Variance Request 89-0215 15-16 

J. CORRESPONDENCE: 16 



L. ADJOURNMENT TO GO INTO CLOSED 

SESSION: 16 



Minutes, November 7, 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

November 7, 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of October 3, 1989 were adopted by 
order of the Commission President. 

No. 89-0197 



D. SPECIAL ITEM: 

1 . Election of Officers 

Commissioners Bernstein and Goosby were unanimously elected President 
and Vice President, respectively. 

No. 89-0198 



E. DIRECTOR'S REPORTS: 

2. Earthquake Recovery Status Report - Verbal Report 

Mr. Lou Turpen, Airport Director, briefed the Commission on the 

status of the Airport's recovery in the wake of the October 17, 1989 

earthquake. A video of the aftermath of the earthquake and its 
effect on the Airport was viewed. 



Minutes, November 7, 1989, Page 3 



Mr. Turpen said that when the earthquake hit there were approximately 
25,000 people at the Airport. Power and primary communications were 
lost. Telephone lines were disrupted, necessitating use of the 
Airport's secondary and terciary systems for telephones and 
communcations. He said that the initial concern was the extent of 
damage, however, the damage was subsequently determined to be mostly 
cosmetic. After two detailed inspections it has been determined that 
the buildings are structually sound. Exhaustive inspections will be 
done in the following weeks to ensure that the entire Airport is safe. 

Mr. Turpen said that two women went into labor, one woman was injured 
by falling debris and another individual suffered a possible heart 
attack. 

Mr. Turpen said that sprinklers went off at Boarding Area 'F' in the 
North Terminal, leaving up to four inches in the area. 

Commissioner Stephens asked if the Airport has insurance. 

Mr. Turpen said that the Airport is insured for certain items. He 
said that there was a significant amount of damage to ceiling tiles, 
carpets, cosmetic features to the terminal. 

Mr. Turpen told the Commission that the biggest problem was trying to 
move the people. He tried to get as many people as possible off the 
Airport and as many aircraft away from the facility as possible. At 
about 9:00 PM that evening approximately 1,200 passengers were 
accommodated in the South Terminal, the least damaged facility, after 
it was checked for structural integrity and cleaned up. 

Mr. Turpen explained that as there were no vehicles on the roadway 
they simply dumped the debris outside the terminals and then cleaned 
it up. 

Mr. Turpen told the Commission that the Airport was 75°/. operational 
by 6:00 AM the next morning and 1007., operational 24 hours after 
that. 

Mr. Turpen said that there was a significant amount of damage to the 
tower. There were a lot of minor injuries to personnel, i.e. cuts, 
bruises and contusions, but nothing major. Tower personnel sustained 
injuries, but they hung in there. 

Commissioner Duval 1 asked how long the tower was out of operation. 

Mr. Turpen responded that the tower was never shut down per se 
although he elected to shut the Airport down in order to recover and 
clean up the debris in the tower. He said that the tower lost a lot 
of equipment. Emergency generators all went on. Debris, injuries to 
tower personnel and airfield noise interferred with the tower's 
abi 1 i ty to function. 

Mr. Turpen said that the Airborne Building, a concrete reinforced 
structure, was lost. 

Mr. Turpen said that the fact that these buildings were remodeled 
helped mitigate against structural damage. The South Terminal was 
reinforced in 1988, the International Terminal in 1983, the North 
Terminal in 1979 and the garage in 1982. He said that tremendous 
support was given by Airport/airline/tenant employees. Everyone 
present at the time pitched in and helped. Host made hundreds of 
meals at its commissary, drove them up to the main level of the 
roadway and set up a food line. The airlines provided blankets. 



Minutes, November 7, 1989, Page 4 



Mr. Turpen said that approximately 2-million square feet of debris 
was cleared out of the terminals. Staff attempted to salvage the 
North Terminal carpet rather than lifting it and exposing the slick 
surface beneath it. Maintenance personnel attempted to clean and 
deoderize the carpet, all efforts failed. That Sunday night the 
carpet was torn out. 

Mr. Turpen said that the buildings, runway systems and hydrant 
systems held beautifully. The weather stripping had been damaged 
during the earthquake, allowing water from Monday's storm to enter 
the terminal buildings through the expansion joints. 

Commissioner Duval 1 asked if the airlines suffered much damage to 
their equipment. 

Mr. Turpen responded that United' s flight kitchen suffered a 
significant amount of damage. The damage seemed to follow a path 
from East to West, in a line with the San Bruno gap... the PG&E 
substation on San Bruno Avenue, our building 8, United's flight 
kitchen, Boarding Area ' F ' and on to the International Terminal. 

Mr. Turpen gave credit to the people who documented this event for 
the Airport. 

Commissioner Goosby asked if the vibration set off the sprinklers. 

Mr. Turpen felt that the vibration might have set them off, or the 
pipes might have broken. 

Mr. Turpen credited all employees at the Airport who assisted in 
returning the facility to operational status. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Murphy moved adoption of a resolution commending the Airport 
community for their exemplary service in this crisis. 

Commissioner Bernstein said that there are four seconds to that motion. 

Mr. Turpen said that he will pass this resolution out to all airlines and 
tenants who responded so selflessly. 

Mr. Turpen invited each Commissioner to the Airport to present awards to 
those employees who assisted in the Airport's recovery. 

The resolution was adopted unanimously. 

No. 89-0199 



G. ITEMS RELATING TO ADMININISTRATION , OPERATIONS & MAINTENANCE: 

3. Approval of Final Draft of Airport Master Plan as a Basis for 
Developing the Environmental Impact Report 

No. 89-0200 



Minutes, November 7, 1989, Page 5 



Mr. Jason Yuen, Administrator, Bureau of Planning and Construction, 
told the Commission that the master plan had its beginning about 
three years ago when the Commis c ion selected Daniel, Mann, Johnson 
and Mendenhal , and, Jefferson Associates as consultants for the 
project. He said that in the last two years three working papers 
were published and almost 2,000 documents were distributed to the 
public, Airport tenants and various governmental agencies. Five 
evening public hearings were held to receive public comments, both in 
San Francisco and on the Peninsula. In addition, the Commission 
discussed and/or acted upon this issue at no less than seven 
Commission meetings. The master plan was also discussed in numerous 
other public forums such as the Roundtable. All in all, no less than 
1,000 comments and questions were received and each one received a 
response. Staff is now at the point where the plan must be frozen 
and the environmental concerns must be addressed. 

Mr. Yuen said that the Commission has before it a conceptual plan 
that meets the future demands of the traveling public. Staff would 
like the Commission's concurrence of this plan so that they can 
proceed with the environmental study. The plan will be the 
foundation of the EIR and is subject to modification or adoption by 
the Commission. 

Commissioner Goosby asked if the City Planning Commission will handle 
the EIR. 

Mr. Yuen responded that the City Planning Department, by City 
ordinance, has the jurisdiction of processing and preparing the EIR. 
City Planning certifies the EIR and the Board of Supervisors adopts 
or accepts it. 

Mr. Turpen said that there will be many additional opportunities for 
the Commission to look at this plan. The Commission is approving the 
final draft today. The process is essentially being frozen so that 
it can be evaluated environmentally. Staff will return to the 
Commission with specific configurations, designs, etc. He said that 
the Commission must define what it wants to do, anticipate what will 
happen and then ask for an evaluation. 

Commissioner Bernstein reminded the speakers that the Commission has 
a three minute limit per speaker. 

Mr. Carlos Caso, Station Manager of Mexicana Airlines and Chairman of 
the Association of Foreign Airlines, and Phil Strohm consultant for 
the Association of Foreign Airlines, were called together to address 
the Commission. 

Mr. Caso read excerpts from the attached letter from the Association 
of Foreign Ai rl ines . 

Mr. Caso introduced Mr. Phil Strohm whom he said would summarize the 
key points on which the Association has built its philosophy. 

Mr. Strohm said that the AFA enthusiastically supports the proposed 
development of a new International Terminal. He said that the 
Association' s. support of the master plan is based on the following 
precepts: Simultaneous completion of Boarding Areas 'A' and 'G' on 
an expedited basis, hopefully by 1994. A single Federal Inspection 
Service concept which would provide sufficient facilities for the 
proper processing of passengers. A terminal and boarding area plan 
which provides the necessary security to properly process and protect 
the passengers and public. A philosophy supporting common use 
gates. The Airport granting exclusion of ticket counter, administra- 
tive office, ramp level space and VIP lounge space. That the Airport 



Minutes, November 7, 1989, Page 6 



adopt a policy regarding the contiguous operation for U.S. flag 
airlines for both domestic and international flights. That the 
Airport and the airlines work together to develop a mutually 
acceptable common use gate allocation policy for priority which will 
be included in future lease documents. That the airlines be allowed 
to furnish, install operate and maintain trade fixtures and that the 
airlines be allowed to assume operational responsibility for the 
scheduling of gates at the Airport. 

Mr. Strohm said it was their goal to participate with the Airport, 
the Airport's Commission and all the airlines to develop a superior 
facility in San Francisco. 

Mr. Dan DeBord, Regional Manager of Properties for Northwest, said 
that Northwest has previously provided comments to the working papers 
leading to the master plan and has received responses to the Airport 
staff. He said that Northwest supports the master planning effort 
and particularly supports an integral part of the master plan, the 
new International Terminal. He said that Northwest has provided 
transpacific service from San Francisco on a daily basis since 1984 
and has a strong interest in the future direction of international 
aviation traffic at SFO. 

Mr. DeBord said that Northwest is in strong agreement with certain 
proposals found in the master plan regarding the International 
Terminal. They support the Airport's plan for a single FIS facility. 
He said that federal inspection is a large and often difficult 
segment of the international aviation picture. SFO's plans for a 
single FIS facility are both prudent and sized correctly to best 
serve the future needs of San Francisco Airport. 

Mr. DeBord said that Northwest also supports the expansion from 10 
international gates to 26. He said that the existing facility is 
over crowded and has reached a critical point in its capacity to 
handle international flights. There is no question that a new 
facility is needed. The question is, how fast can it be 
accompl ished. 

Mr. DeBoard said that SFO is on the theshold of further establishing 
itself as a major international gateway for U.S. aviation. His 
regional responsibilities include two domestic airports and two 
foreign airports that are international gateways. He said that in no 
other location does he have more confidence in the sizing of the 
facilities and the capabilities of the Airport staff to follow 
through on such a major project. Approval of this master plan will 
further establish San Francisco as a major international gateway, 
insure economic benefits and a world-class stature for years to 
come. He recommended that the Commission approve the master plan as 
it is presented and enthusiastically support the staff's plans for 
the new International Terminal. 

Commissioner Murphy said that he recalled in Mr. DeBord's comments to 
Working Paper 'C that he expressed doubts on the people mover system. 

Mr. DeBord said that he is not a strong supporter of the people mover 
system. He has seen the proposed system in Chicago and the existing 
one in Dallas and they don't seem to work at all. He said that John 
Costas (BPC) has made some very good points as far as moving people 
in a unique situation like San Francisco. Mr. DeBord said that 
although he is not 100% behind tne system, his leaning is towards it. 

Commissioner Murphy said that he is a user of the Seattle system and 
it seems to work. 



Minutes, November 7, 1989, Page 7 



Mr. DeBord said that Seattle is a different situation. It has two 
different satellites and the only way to get to them is via a people 
mover system. 

Mr. Clifford Argue, Vice President for Properties and Facilities for 
Alaska Airlines, said that Alaska currently operates 20 daily 
departures from SFO, providing service on the West Coast to both 
domestic destinations in the Pacific Northwest as well as 
international flights to four cities in Mexico. He said that in 
addition to written comments previously filed with the Airport he 
wanted to reiterate Alaska's strong support of the updated master 
plan for SFO as set forth in Working Paper 'C as amended, especially 
relating to the development of a new International Terminal. 

Mr. Argue said that Alaska, as a member of the AFA, endorses the 
positions of that organization, including the development of a single 
FIS facility, the simultaneous completion of Boarding Areas 'A' and 
'G' on an expedited basis by 1994, the philosophy supporting common 
use gates in the international facility to allow fair and competitive 
access to all operators, and the other points presented by Mr. Caso 
and Mr. Strohm. 

Mr. Argue said that Alaska also has domestic expansion requirements, 
which they understand can and will be accommodated as the master plan 
development proceeds. He said that Alaska is most pleased with the 
efforts Airport staff has made to date on this matter and looks 
forward to a continued close working relationship as this important 
project proceeds. He urged that the Commission adopt the plan and 
proceed with the next step. 

Mr. David Robinson, Real Estate Manager for Air Canada, said that 
they fully endorse the Airport's project for a new and separate 
International Terminal facility at SFO. Specifically, they support 
the simultaneous completion of Boarding Areas 'A' and 'G' and the new 
International Terminal building, a single FIS concept which provides 
sufficient facilities for the proper processing of an anticipated 
growth in passengers, a terminal and boarding area which provides 
essential security to properly process and protect the passengers and 
overall airline operations, the development of a facility which 
reflects the City of San Francisco's commitment to meet the growth in 
the Pacific Rim market as well as protecting environmental and 
ecological concerns. He said that it is Air Canada's desire that all 
airlines share the common objective of making San Francisco 
International Airport a major international gateway and cooperate 
with the Commission and Airport staff. 

Mr. Peter DuGre, Pan Am, said that he has three major concerns with 
respect to Working Paper 'C. He said that this working paper is 
termed "Final Draft". A month and a half ago, in response to some 
comments made by United Airlines, a substantial change in 
construction scheduling was presented to the carriers. He did not 
believe that Working Paper 'C has been amended formerly to 
incorporate those changes. Basically, the changes involve the 
simultaneous completion of concourses 'G' and 'A'. He did not see 
how the plan can be considered final when it has not been presented 
formally. The cost of the changes have not been presented either. 

Mr. DuGre said that the paper does not address Pan Am's leasehold 
interests at the Airport in any serious fashion. Pan Am has had 
continuing discussions and negotiations with the Airport staff but 
Pan Am's gate and leasehold interests at the Airport are substantial 
and must be addressed before concourses 'A' and 'G' , as well as other 
construction can be completed. 



Minutes, November 7, 1989, Page 8 



Mr. DuGre said that United Airlines has proposed a double versus a 
single FIS system. He said that although Pan Am has some concerns 
about a double FIS approach, staffing by the Federal government among 
others, nevertheless, United's claim of potential cost savings 
deserves to be looked at more carefully. This is a substantial 
financial undertaking and should not be done in view of one major 
carrier's objections and claims of a substantial savings. He said 
that they are working with the Airport staff and they do promote 
master planning nationwide, if not worldwide, as a means to achieve 
maximum use of airport facilties. However, this is a financial 
undertaking and more details should be presented to the carriers. 

Commissioner Murphy said that he was puzzled at Mr. DuGre's position. 
He asked Mr. DuGre if he was suggesting that the entire matter be put 
off in order to study it further. 

Mr. DuGre responded that he would like to see a formal amendment to 
Working Paper 'C' . 

Mr. John Costas, Bureau of Planning and Construction, said that there 
has been an amendment to Working Paper 'C. The response shows the 
changes in the near term plan at the last part of the paper, 
including an excellerated Boarding Area 'B' schedule. He said that 
three different maps in the master plan and the schedule now show the 
excel leration of Boarding Area 'B' as it was presented. This is the 
simultaneous construction of 'A', 'B'and 'G'. 

Mr. DuGre asked when this was done. 

Mr. Costas responded that these changes are on the final draft before 
the Commission today. 

Mr. DuGre asked when it was distributed to the carriers for review. 

Mr. Costas responded that it was just produced and distributed to the 
carriers in the last week and a half. 

Mr. Turpen assured Mr. DuGre that it was in the copy. 

Mr. DuGre explained that his point was that it is premature to ask 

the carriers to endorse the program in view of the size of the 

undertaking and the fact that the schedule and last page have been 
changed without any idea of the cost involved. 

Commissioner Murphy asked Mr. DuGre if he was suggesting that he 
would support the master plan if he had more time. 

Mr. DuGre said that he has three main concerns. One of the concerns 
is the impact on the cost in excel lerating construction time from 
1998 to 1994. He said that comments at an earlier meeting indicated 
that this would result in a decrease rather than an increase in 
costs. He also has concerns about Pan Am's leasehold interests which 
have not been addressed. He said that the dual versus single FIS 
facility deserves additional consideration in view of a claim of 
subtantial savings to the program. He said that he would let United 
Airlines address that issue. 

Commissioner Murphy said that that is where he is puzzled. He asked 
Mr. DuGre if he wanted to reexamine the entire basis of the master 
plan and the new International Terminal. 

Mr. DuGre responded if the substantial savings of a dual FIS versus 
single FIS facility claimed by United will be in the hundreds of 
millions of dollars. He said that he needs to see a comparison to 
determine whether or not such a savings can be achieved. 

Minutes, November 7, 1989, Page 9 



Commissioner Duval 1 believed that that had been examined. 

Mr. DuGre said that according to United's comments in the newspaper, 
he did not believe that has been looked at. 

Commissioner Duval 1 did not understand what Mr. DuGre was 
recommending the Commission do at this time. She said that a draft 
master plan is before the Commission today with documentation beyond 
belief. She asked Mr. DuGre if he has seen the Airport's response to 
United's comments. 

Mr. DuGre said that he has seen the response. 

Commissioner Duvall said that the Commission understands that United 
is not satisfied with that response but they also understand that 
United has many reasons to be significantly interested in a dual FIS 
approach. 

Mr. DuGre said that the Commission understands that United is not 
satisfied with the response. He has said that Pan Am is not 
satisfied with the comments. He does not understand the Commission's 
puzzlement. 

Commissioner Murphy said that Mr. DuGre's first two points are 
understandable. His third point sounds like he is opposed to the 
concept of the new International Terminal and a single FIS facility. 

Mr. DuGre said that that was incorrect. He said that United has 
claimed that by constructing a dual FIS facility hundreds of millions 
of dollars can be saved in this proposal. United is not satisfied 
with the comments. He said that he would like to see more detail 
comparing the two approaches to see whether or not the savings are 
real . 

Commissioner Murphy concluded that Mr. DuGre was asking for more time. 

Mr. DuGre responded that that was correct. 

Mr. Gordon Cheung told the Commission that he is an architect in San 
Francisco and has worked alot with both Pacific Rim and San Francisco 
businesses. He said that he is a co-founder and past president of 
the Asian American Architects and Engineers whose 100 or so members 
do a considerable amount of work both with the City and with Pacific 
Rim investors. 

Mr. Cheung said that they have had the opportunity over the past 
months to participate in the briefings and the meetings with regard 
to the master plan that Mr. Yuen has mentioned. Speaking as an 
individual he said that he was pleased to support the master plan. 
His firm consistently receives questions from their clients as to the 
business climate in San Francisco, specifically with regard to 
planning policies and constraints which are perceived by oversees 
investors. They all understand that this is a very difficult 
question to address and it's not something that is done easily. 
Whether right or wrong, there is a perception by many of their 
clients that San Francisco's business climate is very negative. He 
believed that the opportunities presented by the implementation of 
the master plan can go a long way in reversing some of these 
perceptions by oversees clients. 

Mr. Cheung said that setting aside the concerns of oversees 
investors, he believed that the implementation of the master plan 
provides a major opportunity for those who reside in San Francisco, 
pay taxes and are small businesses in the Bay Area. This is an 



Minutes, November 7, 1989, Page 10 



important project both for the design and construction community. 
For those reasons he hoped that the Commission considers strongly the 
approval of the master plan. 

Ms. Linda Kraus, a San Francisco resident, said that San Francisco 
Airport has proven itself to be a very profitable entity. She said 
that as a resident and taxpayer of San Francisco she strongly 
supports the draft master plan. She has reviewed the plan and feels 
that the economic benefits and the improved service which would 
result from this needed expansion would outweigh any negative 
concerns. 

Mr. Bob Regal, So. San Francisco resident, said that he owns a home 
one mile north of the main flight path heading west from the Airport 
and he is concerned about the noise issues. In reviewing the master 
plan it is his understanding that there will be adequate space at 
each gate for the new larger and quieter aircraft such as the 
747-400. He believed that with the implementation of the master plan 
and these new gates the noise to his community will be reduced. As a 
result, he supports the master plan and applauds the Commission and 
Airport staff in its development. 

Mr. Timothy Treacy, San Francisco Airport Noise Committee, told the 
Commission that the Airport staff, in particular Mr. Turpen and John 
Costas of the Bureau of Planning and Construction, have been most 
cooperative during this process. He also acknowledged the 
recognition given in the final draft plan to the noise problem as it 
exists in San Francisco. He said that his Committee has participated 
in all phases of this process and supplied written comments to 
Working Paper 'C. He stressed that he received a copy of the final 
draft master plan on Friday and had a brief opportunity to review it. 

Mr. Treacy said that his Committee continues to be disturbed by the 
recitations that the master plan and the EIR are being considered in 
tandum. He said that this does not appear to be the case. The 
master plan is being adopted and that will set it in concrete. He 
said that he was not sure how the EIR would address the environmental 
considerations with which his Committee is concerned, namely the 
noise impacts over San Francisco. There is no discussion of them in 
the master plan and the plan does not attempt to address any 
environmental considerations or possible alternatives to the problems 
as they see them. He said that the Committee is also disturbed by 
the failure of the plan to come to grips with the fact that the 
implementation of this plan will result in a substantial number of 
increased operations . 

Mr. Treacy said that both the General Accounting Office and the FAA 
have recently issued reports which discuss this problem. Both of 
these reports state that the Airport is engaged in a planning process 
to either reconfigure, remodel or add new runways for the specific 
purpose of increasing capacity. The FAA report recognizes that this 
will increase noise problems at SFO. The GAO report takes a slightly 
different view but acknowledges that the number of flights will 
increase. 

Mr. Treacy said that his Committee is also concerned that the final 
draft document has not been made public. He acknowledged that his 
Committee received a copy and has had the opportunity to review it, 
but said that it seemed strange that the master plan is being adopted 
without any opportunity for public review. He said that he failed to 
understand this. 

Mr. Treacy concluded by again acknowledging the help that his 
Committee has received from the Airport staff. 



Minutes, November 7, 1989, Page 1 



Mr. Paul Van Wert, United Airlines, told the Commission that United 
Airlines was the airline that was most impacted operationally by the 
October 17 earthquake. He read a statement from Rod Strickland, 
United's General Manager in San Francisco: 

On behalf of the 17,000 Bay Area United Airlines 
employees, I would like to publicly thank Lou Turpen and 
the Airport staff for their immediate and responsive help 
following the October 17 earthquake. As you have seen 
from the video, United's North Terminal sustained the most 
severe damage of the public terminal buildings. United 
Airlines appreciated the Airport's assistance in returning 
the facility to service in record time. We also commend 
their continued efforts to minimize the concerns of our 
customers and efforts to replace ceiling tiles and carpet 
are being addressed quickly and cooperatively. Finally, 
we appreciate the transportation arrangements made with 
SamTrans and San Francisco Airporter to assist our East 
Bay employees in getting to and from work. These special 
arrrangements were coordinated by Lou Turpen' s staff. In 
total, the response and cooperation has been exemplary. 
We thank you, the Airports Commission, Lou Turpen and all 
the Ci ty employees . 

Sincerely, Rod Strickland, General Manager, United 
Airlines, San Francisco International Airport. 

Mr. Van Wert said that he knew that United has had other 
opportunities to thank Mr. Turpen for his efforts but they wanted to 
do it for the Commission as well. 

Mr. Van Wert read another statement from Mr. J. Richard Street, Vice 
President of United's Airport Affairs in Chicago, regarding the 
proposed new International Terminal facility (see attached). 

Mr. Turpen told the Commission that both Jason Yuen and John Costas 
were available to answer questions regarding this matter. 

Commissioner Goosby, in response to Mr. Treacy's concerns, said that 
the master plan is being adopted pending approval by the City 
Planning Commission. He said that an environmental impact report 
must be done as well before Board of Supervisor's approval can be 
obtained. He assumed that the City Planning Commission will hold 
hearings as well. He said that the process cannot begin until the 
Commission adopts the plan. We must proceed so that revisions can 
be made in view of City Planning's EIR. 

Commissioner Goosby said that he looks at this as the first step and 
it can be amended as the need arises. He said that he is also 
interested in obtaining comments from Customs/Immigration regarding 
the advantages and/or disadvantages of a dual versus single FIS 
facility and an explanation of the cost factor as well. 

Mr. Turpen said that he would be happy to provide the Commission 
with the Customs/Immigration information. 

Mr. Turpen sa.id that the Commission's approval is necessary so that 
the plan can be transmitted to the City Planning Commission and they 
can initiate their process. 

Commissioner Goosby concluded by saying that there is more to this 
plan than the International Terminal. There are facets to the plan 
that will cause changes to take place that will effect both the City 
and County of San Francisco and San Mateo County. It is important 
that it not get hung up in a debate over just the International 
Terminal. The entire package must be considered and approved. 

Minutes, November 7, 1989, Page 12 



4. Authorization to File Application for Federal Financial Assistance 

No. 89-0201 Resolution designating Director of 

Airports as agent of Airports 
Commission to execute and file 
application for Federal Financial 
Assistance under the Federal Disaster 
Relief Act or Federal Assistance 
otherwise available from President's 
Relief Fund. 

Mr. Turpen explained that this is an administrative item in the 
aftermath of the October 17 earthquake. The Airport may be eligible 
for Federal funds and this resolution authorizes him to act on 
behalf of the Airports Commission in applying for those funds. 



$466,005.00 Supplemental Appropriation for Operating Expenses 
Related to the Earthquake 

No. 89-0202 



Bid Call - Contract No. 2259: 
Area Lighting - Plot 99 and 100 

No. 89-0203 Resolution approving the scope, 

budget and schedule for Contract 
2259, and authorizing the Director to 
call for bids and to award this 
contract to the lowerst, qualified 
and responsive bidder. 



H. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. Item No. 9 was amended. 

7. Declaration of Emergency 
Contract No. 2260: 
Emergency Water Main Repairs 

No. 89-0205 Resolution ratifying the action of 

President of the Commission in 
declaring an emergency because of 
water main damage at various Airport 
locations due to earthquake and 
directing the Director of Airports to 
effect the necessary repairs. 



Declaration of Emergency 

Contract No. 2262: 

Emergency Earthquake Damage Repair - Airfield 

No. 89-0205 Resolution ratifying the action of 

the President of the Commission in 
declaring an emergency (Earthquake 
Damages to the Airfield Facilities) 
and authorizing the necessary repairs 



Minutes, November 7, 1989, Page 13 



9. Declaration of Emergency 
Contract No. 2263: 
Emergency Earthquake Damane Repair - Terminal 

No. 89-0206 Resolution ratifying the action of 

the President of the Commission in 
declaring emergency (Earthquake 
Damage to Terminal Structures) and 
authorizing the necessary repairs. 



10. Declaration of Emergency 
Contract No. 2264: 
Emergency Earthquake Damage Repair Airport Supports 

No. 89-0207 Resolution ratifying the action of 

the President of the Commission in 
declaring an emergency (Eathquake 
Damage to Airport support buildings 
and structures) and authorizing the 
necessary repairs. 



1 1 . Declaration of Emergency 
Contract No. 2265: 
Emergency Earthquake Damage Repairs - Groundside 

No. 89-0208 Resolution ratifying the action of 

the President of the Commission in 
declaring an emergency (Earthquake 
Damage to Airport Groundside 
Facilities) and authorizing the 
necessary repairs. 



12. Declaration of Emergency 
Contract No. 2266: 
Emergency Utilities Repairs 

No. 89-0209 Resolution ratifying the action of 

the President of the Commission in 
declaring an emergency because of 
utility damage at various Airport 
locations and directing the Director 
of Airports to effect the necessary 
repairs . 



13. Bid Call : Contract No. 2258 : 

Emergency Pavement Repairs - 1990 

No. 89-0210 Resolution approving the scope, 

budget and schedule for Contract No. 
2258, Emergency Pavement Repai r s-1 990 
and authorizing the Director to call 
for bids. 



Minutes, November 7, 1989, Page 14 



14. Award of Contract No. 2172R : 

Airport Auto Shop Replacement of Leaking Hoists 

No. 89-0211 Resolution awarding Contract No. 2172R 

to Ernie Lowe and Sons, Construction 
in the amount of $88,045.00. 



15. Award of Contract No. 2163R : 

Airport Fuel System Repair and Related Work 1989-1990 

No. 89-0212 Resolution awarding Contract No. 2163R 

to Crisp Construction in the amount of 
$164,048.00. 



16. Resolution Approving the Sublease of a Portion of TWA's Air Freight 
Facility Located on Plot #3 from Trans World Airlines, Inc. by West 
Coast Fueling, Inc . 

No. 89-0213 



17. Resolution Approving Reimbursement of Temporary Relocation Costs for 
Pol lar Rent A Car . 

No. 89-0214 

Mr. Turpen explained that the funds that are being expended for this 
item will not adversely impact SF0 if the entire plan were to cease 
tomorrow. He said that there are certain facility requirements and 
limitations on facility space and this action accommodates the desire 
to move forward with the master plan. 

Commissioner Goosby asked if this company would move into another 
structure in any event. 

Mr. Turpen responded that it would. 



I. NEW BUSINESS: 

Mr. Turpen introduced a resolution to the Commission concerning DHL 
Airways. He said that DHL has a variance to operate at SF0 until December 
31, 1989. DHL approached staff within the last day or two with a petition 
for a new variance that would put into motion the hiring of an independent 
hearing officer to gather evidence in this matter. This resolution 
continues a tradition previously authorized by the Commission and directs 
him to retain the hearing officer to conduct the appropriate hearing. He 
said that the results will be reported back to the Commission for action 
by the first meeting in December. 

The resolution was adopted unanimously. 

No. 89-0215 



Minutes, November 7, 1989, Page 15 



Commissioner Goosby hoped that the public understood that this section of 
the calendar provided the opportunity for members of the public to address 
the Commission on matter^ that have not been calendared. 

Mr. Garibaldi added that the law requires the Commission provide members 
of the public with the opportunity to speak. 



J. CORRESPONDENCE: 

There was no discussion by the Commission, 

* * * 



L. ADJOURNMENT TO GO INTO CLOSED SESSION: 



/5 



Je^in Caramatti 
Commission Secretary 



Minutes, November 7, 1989, Page 16 



ASSOCIATION OF FOREIGN AIRLINES 

San Francisco International Airport 

P. 0. Box 8737 

San Francisco, CA 94128 



November 6, 1989 
REF: SFO-AFA-002 



NOV. 6.1969 

The Honorable Morris Bernstein 

President 

Airports Commission 

San Francisco Int'l Airport 

San Francisco, CA 94128 

RE: PROPOSED NEW INTERNATIONAL TERMINAL FACILITY 

Dear Mr. Bernstein: 

We appreciate the opportunity to address the San Francisco Airports Commission 
regarding the Proposed New International Terminal Facility in reference to the 
Master Plan. 

The Association of Foreign Airlines was recently formed to represent the collective 
interests of 14 airlines comprising in excess of 79% of all international flight 
activity at San Francisco International Airport. 

The current members of the Association are: 

Air Canada Canadian Mexicana Singapore 

Air France China Northwest UTA 

Alaska Japan Airlines Philippine 

British Airways Lufthansa Qantas 

As stated in previous correspondence to the Airports Commission, we are enthusiastic 

about the proposed development of a new international terminal and wish to express 

our support for the Master Plan with regards to the development of this facility 
based upon the following stipulations: * % 

* Simultaneous completion of Boarding Areas A & G and the new 
International Terminal Building on an expedited basis to be completed 
by 1994. 

* A single Federal Inspection Service (FIS) concept which provides . 
sufficient facilities for the proper processing of passengers. 

* A terminal and boarding area plan which provides the necessary security 
to properly process and protect the passengers and public. 

* A philosophy supporting Common Use Gates which allows for the proper 
competitive environment enabling all airlines to develop market share 
without giving preference to any one airline. 



The Honorable Morris Bernstein 
November 6, 1989 
Page 2 

* Granting the exclusive lease of ticket counter, administrative office 
space, ramp level space, VIP lounge space and other support space provided 
that such space is directly related to airline operations. 

* That all US flag airlines having both domestic and international operations 
at San Francisco International Airport be provided contiguous domestic 

and international facilities. 

* That the airport and airlines will develop mutually acceptable Common 
Use Gate Allocation Priorities which will be included in future lease 
documents that all parties will be obligated to comply with prior to 
operating at the International Terminal. 

* That the airlines are allowed to: 

- Furnish, install, operate and maintain trade fixtures and equipment 
(such as passenger loading bridges, FID and BID Systems, baggage 
systems, etc.) 

- Assume operational responsibility for gate scheduling of common 
use gates. 

* Acceptance of the above precepts by the Airport staff. 

It is our goal that all parties share the common objective of making San Francisco 
International Airport a major international gateway, and we believe that acceptance 
of the above views will create the atmosphere to move forward in an expeditious 
and positive manner. 

The AFA encourages the rapid development of this new facility and urges the 
Commission to adopt the necessary policies which include' our views to commence 
this project. 

/' Sincerely yours, 

50CIATI0N OF FOREIGN AIRLINES 

^Carlos/Caso 
CC:sev 
cc: Bon. Art Agnos, Mayor '. 

Hon. Z. L. Goosby, Vice Pres. Airports Commission 
Hon. D. R. Stephens, Airports Commision 
Hon. S. B. Duvall, Airports Commission 
Hon. P. A. Murphy, Airports Commision 
y- u r L. A. Turpen, Director of Airports 



(iff 



uniT«D AiRLines 

Executive officii November 7, 1989 



The Honorable Morris Bernstein 

President 

Airports Commission 

San Francisco International Airport 

San Francisco, California 94128 



Re: Brift Master Plan; Propoa»d 

Big International Urainn 



Dear Mr. Bernstein: 



United Air Lines, Inc. appreciates and welcomes the opportunity 
to provide comments to the San Francisco Airports Commission 
with respect to the Proposed New International Terminal Facility 
that is a fundamental element in the Final Draft Master Plan for 
the San Francisco International Airport. 

United continues to be not only the Airport's leader in domestic 
and International activity but, more importantly, its 
consistently positive supporter and participant in terms of 
airport development, both airfield and terminal. Ke reconfirm 
to the Commission today our corporate commitment to maintain and 
enhance our long-standing relationship with the City and County 
of San Francisco. 

Last January, United formally announced its plans regarding new 
jobs for the Bay Area and our acquisition of wide-body aircraft 
for use in United's greatly expanded Pacific Rim international 
operations to and from San Francisco International Airport. 
United's plans clearly demonstrated a substantial and priority 
requirement for expanded and enhanced international facilities 
at the Airport. We also indicated United's desire and need to 
lease and occupy the new Concourse G to be constructed at the 
Airport under any one of various scenarios. 

Throughout 1989, United has moved forward aggressively with our 
international expansion at San Francisco. Specifically, we have 
commenced service to Manila, Taipei, Seoul and Mexico city and, 
via Honolulu, to Sydney, and we have added a third non-stop 
flight to Tokyo. United has also announced its intention to 
begin to Include non-stop service from San Francisco to such 
European destinations as, Frankfurt, London and Paris. 



P.O Bo« 66100. Chlcigo lll.ncii 60666 • Loeatlorv Elk OrOvl TewMhip. IliinOil, 0* Rouli 62 eni-haif mill wtu C Pouie 83 



The Honorable Morris Bernstein 
November 7, 1989 
Page 2 

The Airport clearly needs additional terminal facilities, 
including expanded FI6 facilities — and needs them at the 
earliest possible date. The City, acting through this 
Commission, has a proven track record for responding 
affirmatively and expeditiously to satisfy the Airport's needs. 
Quite frankly, this record of professionalism was a key factor 
in United' s decision to focus our international growth plans at 
the Airport and to move forward on such a rapid basis. 

Over the last 18 months ( planning for new or expanded 
international terminal (FIS) facilities at the Airport has 
evolved from an original City plan to expand the existing 
International Terminal (Boarding Area D) into Boarding Area E; 
to a United proposal to create a dual-FIS solution with the 
existing Boarding Area D and construction of a new international 
Boarding Area G; to the current City proposal to construct an 
entirely new International Terminal, which would encompsss new 
Boarding Area A and G, with a eingle-FIS facility contained in a 
new terminal spanning the entrance roadway. 

United 's recommendation for a dual-FIS solution remains the most 
economical and timely of the alternatives considered for 
terminal expansion at 6FIA. However, after comprehensive 
discussions and reviews with the Director of Airports and his 
staff, United has determined that, under certain conditions, it 
can support the New International Terminal/Concourse A and G 
concept embodied in the Final Draft Master Plan new before the 
Commission for review and approval. A fundamental element of 
United' s support is the requirement that the total International 
Terminal program must adequately accommodate United 's growth 
requirements at the Airport, both international and domestic. 

Regarding concepts, United will be discussing with the Director 
of Airports and his staff the appropriate procedures and 
agreements for achieving the following objectives, each of which 
facilitates the early implementation of the total International 
Terminal (FIS) program: 

(1) Negotiation of a mutually acceptable early termination of 
certain United land leases on areas that are required for 
the Concourse G development; 

(2) Identification of replacement land and/or facilities as 
alternative sites for United to replace its dislocated 
facilities. 

(3) Negotiation of a long-term lease for all of Boarding 
Area G, which lease will include provisions designed to 
provide for United — 



The Honorable Morris Bernstein 
November 7, 1989 
Page 3 

(a) Exclusive use of gates necessary to support its 
total domestic operations; 

(b) Preferential use of gates necessary to support its 
current and expanding international operations; and, 

(4) Development and implementation of an expedited 

construction program for the entire International Terminal 
project which will ensure that these expanded and enhanced 
facilities will be available for occupancy by United and 
the other airlines no later than June 1994. 

United has reviewed the October 6, 1989 letter to this 
Commission from the Association of Foreign Airlines ("AFA") on 
the referenced subject. To the extent that the AFA position is 
not inconsistent with the United position stated herein -- and 
in certain key instances, there are clear inconsistencies — we 
basically concur with the identified issues, and we look forward 
to a joint and cooperative effort with the AFA and the Airport 
staff in seeking appropriate and early resolution of these 
Issues. 

In summary, United strongly supports the immediate need for 
expanded and enhanced international terminal (FIS) facilities at 
the Airport, as a fundamental element of a total development 
program that is responsive to both international and domestic 
growth requirements for the carriers serving the Airport. We 
have clearly identified United' s near and longer-term needs and 
we will work cooperatively with the Airport staff and the other 
airlines to ensure that the total requirements of the Airport 
and, most importantly, the traveling public, are met in a timely 
and appropriate manner. 

We urge the Commission to take those actions necessary to 
promptly achieve our common objectives. 

Sincerely, 



ft J. Richard Street 
(/ Vice President 
Airport Affairs 



cc: Hon. Z. L. Goosby, Vice Prea. Airports Commission 

Hon. D. P.. Stephens, Airports Commission 

Hon. S. B. Duvall, Airports Commission 

Hon. P. A. Murphy, Airports Commission 

Mr. L. A. Turpen, Director of Airports 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

JAN 4 1990 

Ml IUI |G I !^^,vDV 



MINUTES 



NOVEMBER 21, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 



MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

November 21 , 1989 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER: 


B. 




ROLL CALL: 


C. 




ADOPTION OF MI 



RESOLUTION 
NUMBER 



Regular meeting of 
October 17, 1989 



ITEMS INITIATED BY COMMISSIONERS: 



PENDING LEGISLATION: 

State Legislation - Opposing 
S.B. 1723 



89-0216 



89-0217 



PAGE 
3 

3 



3 

3 

3-4 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Selection of Underwriters for 
the Refunding of the Series D 
Bonds 89-0218 

Authorization to Accept Proposals: 
Information Booths at S.F.I. A. 89-0219 

Authorization to Accept Proposals: 
Agreement for Operator Assisted 
Long Distance Service from Pacific 
Bell Public Pay Telephones 89-0220 

$19,799,658 Supplemental Appropria- 
tion to Fund Approved Capital 
Projects 89-0221 

Bid Call - Contract No. 2160: 
In-Transit Lounge International 
Terminal 89-0222 

Authorization to Conduct Pre-bid 
Conference: Executive Stationery 
Store Lease 89-0223 

Sublease Between Trans World Airways, 
Inc. and GTE Mobilnet of California, 
Ltd. 89-0224 



4 
4-7 

7-8 



8-9 



9-10 



10 



Authorization for Christmas 

Bazaar 89-0225 10 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

10. North Terminal Bookstore - 

Design Approval 89-0226 10 

11. Award of Contract No. 2144R: 
Monitoring/Recovery Wells 
Installation - North Terminal - 

Groundwater 89-0227 10-11 

12. Resolution Ratifying Personnel 

Actions 89-0228 11 



H. NEW BUSINESS: 11 

Variance Hearing for Air Train 

& Ryan International 89-0229 11 

I. CORRESPONDENCE: 11 



ADJOURNMENT TO GO INTO 

CLOSED SESSION: 12 



Minutes. November 21, 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

November 21 , 1989 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:11 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Sharon B. Duval 1 

Absent: Donald R. Stephens 

Patrick A. Murphy 

Due to the demonstration at the Federal Building and the subsequent 
street closings in the Civic Center area, Commissioner Stephens was 
unable to reach City Hall to attend this meeting. 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of October 17, 1989 were adopted by 
order of the Commission President. 

No. 89-0216 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



PENDING LEGISLATION: 

Item No. 1 was adopted unanimously. 

1 . State Legislation 

A resolution opposing S.B. 1723 
(Roberti) which would require that the 
State Public Utilities Commission 
develop procedures for the allocation 
of access to Airport gates. 

Minutes, November 21, 1989. Page 3 



Mr. Lou Turpen, Airport Director, explained that this item authorizes 
the Director to oppose SB 1723. This bill would place terminal gate 
allocation in the hands of the Public Utilities Commission as opposed 
to the Airports Commission. This bill is contrary to any number of 
agreements, leases and Federal constraints. He would like to oppose 
this legislation and share with the Senate the constraints such 
action would place on airports. 

Commissioner Goosby said that the process of assigning gates does not 
need any additional involvement. 

Commissioner Duval 1 asked about the status of the bill. 

Mr. Turpen responded that the bill has not yet been heard. 

Mr. Turpen commented that the future is not in the long term leasing 
of gates but some flexible assignment system controlled by the 
Airport. This bill suggests that we stay with a traditional and 
particularly ineffective approach to gate allocation. He said that 
if the Assembly and the Senate want to help us they can void all long 
term terminal gate assignments. 

Commissioner Goosby asked if the City's Sacramento lobbyist is aware 
of the Airport's position. 

Mr. Turpen said that she is. He said that this action will be shared 
with all appropriate persons, including our lobbyist. 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were adopted unanimously. 

2. Selection of Underwriters for the Refunding of the Series D Bonds 

No. 89-0218 Resolution authorizing Airport staff 

to request proposals from firms to 
serve as Senior Manager for the 
proposed refunding of the Series D 
Bonds. 

Mr. Turpen said that some months ago Commissioner Bernstein requested 
staff examine the possibility of refunding Series D bonds at a more 
attractive interest rate to reduce our debt service. Staff has 
determined that the mechanisms are in place to effect such a 
refinancing. He said that about $700,000 a year can be. saved in debt 
service. He asked the Commission to request proposals from under- 
writers to serve as the Airport's senior manager in this effort. 

Commissioner Duvall noted that the package contained a sentence which 
strongly encourages joint proposals with minority and women-owned 
firms and felt it was important that the public realize that. 



Authorization to Accept Proposals: 
Information Booths at S.F.I. A. 

No 89-0219 This package is to obtain Airports 

Commission authorization to issue a 
Request for Proposals for the Airport 
Information Booths in the lower level 

Minutes, Novembet 21, 1989, Page 4 



baggage claim areas of the terminals. 
A Director's Report was presented to 
the Airports Commission on October 3, 
1989, describing the need and purpose 
for Airport Information Booths. The 
background of the program, a revised 
time schedule for implementation, a 
revised cost analysis and a summary of 
the services to be provided are 
included. This program would be 
phased in with the establishment of 
three Information Booths in mid-1990 
and two additional booths in mid-1992. 

Mr. Turpen said that the Commission previously received a report from 
staff concerning the Information Booths. He called the Commission's 
attention to the implementation timetable located in the package. 
This agenda item requests Commission approval to solicit proposals 
for these booths. Staff anticipates a two-phased implementation. 
Phase I will include three booths in each terminal. Phase II will 
provide two additional booths each in the North and South Terminals. 

Commissioner Goosby asked what the criteria for success will be. 

Mr. Turpen responded that the criteria will be the degree to which 
the booths are utilized and proved of benefit to the traveling 
public. Staff wants to ensure that the information provided is as 
objective and broad-based as possible, as opposed to responding to a 
question with a single alternative. 

Mr. Turpen said that the passengers will not be as much of a problem 
as will be the concerns of those groups who serve the Airport and who 
want to ensure that they are not foreclosed by virtue of the 
information given. He said that the training program will be 
particularly important. 

Mr. Turpen said that staff will share the proposals presented with 
the Commission and provide recommendations. The proposals will have 
to meet a certain criteria and staff will look for the most 
efficient, cost effective proposal offering the broadest range of 
services . 

Commissioner Goosby suggested that the Commission be provided with an 
objective evaluation on a quarterly basis. 

Mr. Turpen said that information booths have had a checkered past. 
Although O'Hare's experience with information booths was positive, 
the idea was abandoned. He said that O'Hare's booths were narrowly 
focused. Staff wants to market SFOs booths more agressively. 

Commissioner Goosby asked if the Mayor's Office requested that 
certain material be included for distribution. 

Mr. Turpen said that he saw this as a vehicle for responding to the 
Mayor's concerns of how to get San Francisco information into the 
hands of the travel ing public who want and need it as early as 
possible. He said that many Pacific Basin airports have information 
booths and information packages on site. This would be a good 
vehicle to provide similar information to persons arriving in San 
Francisco, particularly international passengers. 

Commissioner Duvall asked what sorts or background/qualifications 
were being required. 



Minutes, November 21, 1989, Page 5 



Ms. Janice Gendreau, Landside Operations, responded that staff was 
looking for background that emphasized business management and 
customer service organizational skills. Secondarily, it would be the 
program itself the bidder was proposing. Thirdly, the cost of the 
bid. She said that the emphasis is on customer service and a 
business management/bookkeepping background. 

Mr. Turpen said that this will be a Prop J effort and will require 
the Controller's approval. 

Ms. Gendreau added that about six parties were currently interested. 

Commissioner Duval 1 asked the nature of the businesses in which these 
people are currently involved. 

Ms. Gendreau responded that they are Traveler's Aid, Pacific Bell and 
analyst-type consultants with both business and transportation back- 
grounds. She said that at least two people in the transportation 
area are interested although she was uncertain if they were 
appropriate. 

Mr. Turpen said that there has been significant expressions of need 
for a specific area in the baggage claim area where passengers could 
seek objective information on the Airport. Presently, passengers go 
to whomever is available, whether it be rent-a-car counters, 
limousine counters or police officers. The information passengers 
currently receive depends upon the individual providing it. He said 
that staff is trying to come up with a mechanism whereby all 
information can be integrated into an objective format and presented 
by qualified, unbiased persons. The objective is the passenger's 
goal, not a private sector goal. 

Commissioner Duvall felt that current ground transportation operators 
should be disqualified from bidding on the basis of conflict of 
interest. 

Mr. Turpen agreed that hiring a ground transportation operator would 
be a problem. He asked Mr. Fein of Landside Operations if ground 
transportation operators have been disqualified from bidding. 

Mr. Fein said that anyone providing a ground transportation service 
at the Airport would be prohibited from bidding on the contract. 

Commissioner Duvall said that some ground transportation operators 
have expressed an interest. She asked if any quasi-governmental 
organizations in the City, such as the Conventions and Visitors 
Bureau, expressed an interest in operating this service. 

Mr. Fein responded that Traveler's Aide expressed an interest and he 
has had discussions with the Mayor's Office as well. Although the 
Convention and Visitor's Bureau is not interested in providing the 
service, they will provide the contractor with the type of 
information they would like distributed. 

Mr. Turpen felt that because of the significant ground transportation 
element it moves the Convention and Visitor's Bureau away from their 
basic focus. He said that he would welcome their participation or 
personnel . 

Commissioner Duvall asked if minimum staffing requirements were being 
specified. 

Mr. Fein responded that minimum hours of service in each building, 
with the ability to expand beyond those base hours is being required. 



Minutes, November 21, 1989, Page 6 



Booths can be shut down during quiet periods. In the event a 
passenger requires assistance in that terminal. Information Booth 
personnel will be available to the passenger via a telephone hook-up. 
Mr. Fein added that multi-lingual services will also be required. 

Commissioner Goosby asked how we are able to eliminate the bidding 
process. 

Mr. Don Garibaldi, Airports General Counsel, responded that this is a 
professional services contract which is provided through requests for 
proposals. It is not a lease, which requires bidding. This is very 
much like a management contract where the Airport provides the space. 

Commissioner Goosby commented that the garage is handled through a 
management contract. 

Mr. Garibaldi said that potential operators will be asked to provide 
a plan as to how they would operate the service. In the case of the 
garage, the Airport specified all the details as to how the garage 
would be operated. He said that while specifics were laid out in 
this proposal as well, the Airport will also look for ideas on how to 
run the operation and additional services to be provided. 

Commissioner Goosby said that he is always nervous when requests for 
proposals go out for some things and bids are requested for others. 
He wants to be very clear that there is a legal responsibility to bid 
certain items and was curious why this did not require a bid. 

Mr. Garibaldi said that while he is the strongest advocate of bidding 
everything, this does not require a bid because there are no clear 
specifications defining what we want. 

Mr. Turpen added that quite often specifications are structured from 
experience and this is an unstructured or unexplored area. The 
Commission needs to keep its options open in looking at proposals as 
this is not just an issue of cost. This goes beyond money to the 
ability to train, how staffing will be handled and the quality of the 
program. The bidder will use the Airport's criteria as the basis for 
a program. He said that there are many possibilities and the Airport 
will look for an infusion of creativity and imagination in the 
proposal s . 

Commissioner Goosby asked what the dollar amount for bidding would be, 

Mr. Garibaldi responded that the amount is $50,000.00. 



Authorization to Accept Proposals: 

Agreement for Operator Assisted Long Distance Service from Pacific 

Bell Public Pay Telephones 

No. 89-0220 Resolution authorizing staff to accept 

proposals for the Agreement for 
Operator Assisted Long Distance 
Service from Pacific Bell Public Pay 
Telephones . 
Mr. Turpen explained that this is a request for proposals for long 
distance service at SF0. He said that this item has been the subject 
of some discussion and a lawsuit. The Commission instructed staff to 
move expeditiously. Staff has tried to maximize the number of 
participants by not foreclosing anyone in the bidding criteria yet 
maintaining a responsible set of bidding criteria at the same time. 
He said that staff has done an excellent job. 

Minutes, November 21, 1989, Page 7 



Mr. Garibaldi added that the litigation resulted in a determination 
by the court that the Airport can proceed by way of a request for 
proposal s. 



$19,799,658 Supplemental Appropriation to Fund Approved Capital 
Projects 

No. 89-0221 

Mr. Turpen explained that this is an administrative requirement. The 
Commission has already approved the projects. 

Commissioner Bernstein asked how long this will take. 

Mr. Turpen said that it is a fairly straightforward process and will 
take two to three months. 

Mr. Peter Nardoza, Assistant Deputy Director for Business and 
Finance, explained that it will leave the Airport today and go to the 
Mayor, from the Mayor to the Controller, from the Controller it goes 
back to the Mayor, from the Mayor it goes to the Board of 
Supervisors, from the Board it goes to Committee, from Committee it 
goes to the full Board, and after the full Board acts it goes back to 
the Mayor for his signature. 

Mr. Turpen said that because of the structure that has been in place 
for many years, routine matters suffer the same protracted scrutiny 
as everything else. He added that the length of time will not impede 
the Airport' s acti vi ty. 



tid Call - Contract No. 2160: 



In-Transit Lounge International Terminal 

No. 89-0222 Resolution approving the scope, budget 

and schedule for Contract 2160, and 
authorizing the Director to call for 
bids and to award this contract to the 
lowest, qualified and responsive 
bidder. 

Mr. Turpen explained that the Airport needs an in-transit lounge as 
the Airport continues to experience more and more passengers coming 
from the Pacific and continuing on to Europe. These passengers wait 
on the ground for the aircraft to be serviced and need a sterile 
waiting area. The Airport has made a swap with Qantas for space. 

Commissioner Goosby asked who would provide the refreshments for 
these passengers. 

Mr. Turpen responded that Host will provide refreshments via a snack 
bar facility, with the passengers paying Host directly. This is a 
standard arrangement. 

Mr. Turpen explained that these passengers do not need to clear 
customs as they are only transiting. Theoretically, they never enter 
the United States. An in-transit lounge saves these people from 
clearing customs twice, here and at hteir final destination. 

Commissioner Duval 1 asked what the VIP Room was for. 



Minutes, November 21, 1989, Page 8 



Mr. Turpen responded that he was not certain but assumed that it 
might be a small area where transiting dignitaries could wait. 

Commissioner Duval 1 asked if that was an appropriate area for them. 

Mr. Turpen explained that if they are transiting passengers they 
can't legally enter the country without clearing customs. He 
explained that there is a shortage of space and Qantas was willing to 
move its lounge to the International Terminal building itself. 
Qantas will pay rent on the new space and develop it themselves. He 
said that there may be some unamortized cost for the construction of 
that lounge for which Qantas may be reimbursed. The in-transit 
lounge will be constructed in such a way as to meet customs/ 
immigration requirements for separation of passengers and maintaining 
the sterility of the area. This room should accommodate our needs 
for the next three or four years until the new International Terminal 
is bui It. 



7. Authorization to Conduct Pre-bid Conference : 
Executive Stationery Store Lease 

No. 89-0223 Resolution authorizing staff to 

conduct a pre-bid conference for an 
Executive Stationery Store Lease. 

Mr. Turpen told the Commission that this concession will replace the 
Sunglass kiosk. He thought it was a good idea and said that a number 
of other airports are looking at this concept as well. 

Mr. Bob Rhoades, Property Management, said that this type of 
concession, though not currently in place in other areas, is being 
considered at four or five airports. Staff will contact upper-end 
stationery stores in downtown San Francisco as well as in Contra 
Costa County. 

Commissioner Duvall asked what would happen with the shoeshine lease. 

Mr. Rhoades responded that it is currently out to bid. 

Commissioner Duvall asked if it would remain in the same location. 

Mr. Rhoades said that it would. 

Commissioner Bernstein asked how many square feet this will encompass 

Mr. Rhoades responded that it will be a small store with 152 sq. ft. 

Mr. Turpen said that it will basically be a counter. 

Commissioner Bernstein commented that the minimum bid would be 
$25,000.00. 

Commissioner Duvall asked what the minimum bid on the Sunglass Kiosk 
was. 

Mr. Rhoades responded that he did not know. 

Mr. Turpen said that some of the Commission's questions might be 
satisfied by the response staff receives from the pre-bid conference. 

Commissioner Goosby did not feel that a store of this type required a 
selection of expensive items, nor did he feel that the square footage 
would accommodate this concept. 

Minutes, November 21, 1989, Page 9 



Mr. Turpen said that the pre-bid conference would give us the 
information we need. He said he liked the idea and if it doesn't 
work in this space it can be considered for another location. 

Commissioner Goosby asked if the luggage storage concession sold 
luggage as wel 1 . 

Mr. Turpen responded that it provides repairs but does not sell 
luggage, nor does any other concession at the Airport. 

Mr. Nardoza added that several concessions sell tote bags. 



Sublease Between Trans World Airlines, Inc. and GTE Mobilnet of 
California, Ltd. 

No. 89-0224 Resolution approving a sublease 

between Trans World Airlines, Inc. 
(TWA) and GTE Mobilnet of California. 
Ltd. for installation of a Cellular 
Receiving and Transmitting Unit at 
TWA' s cargo bui lding. 



Authorization for a Christmas Bazaar 

No. 89-0225 Resolution authorizing a Christmas 

Bazaar for Airport, airline, and other 
tenants' employees. 

Commissioner Goosby liked the idea and suggested that twice a year 
might be even better. 



G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The following items were adopted unanimously. 

10. North Terminal Bookstore - Design Approval 

No. 89-0226 Resolution approving design of North 

Terminal Bookstore. 

11. Award of Contract No. 2144R : 
Monitoring/Recovery Wells Installation 
North Terminal - Groundwater 

No. 89-0227 Resolution awarding Contract 2144R to 

American Construction and Supply, Inc. 
for $61 ,973.00. 

Mr. Bouey explained that there are currently about 50 groundwater 
wells. This well is in response to a specific underground tank that 
was leaking. The tank has since been replaced but that area must now 
be cleaned up. There is a perimeter well system that comes in off 
the perimeter of the Airport towards the terminals which enables us 
to keep an eye on the underground fuel system. 

Minutes, November 21. 1989, Page 10 



Commissioner Goosby asked what the statement "...and we will recover 
contaminated groundwater" means. 

Mr. Bouey responded that the amount of damage will be measured and 
the contaminated water will be removed. He said that this is not 
drinking water, it's brackish water. 

Commissioner Goosby asked if City contracts and their bid amounts are 
being kept track of. He did not believe that American Construction 
and Supply would have bid this low had it not been for the fact that 
they had to compete with MBE/WBEs. He did not think anyone was aware 
of how much money the City saves because of this requirement. 

Mr. Nardoza told Commissioner Goosby that the Human Rights Commission 
just received a $258,000 supplemental appropriation from the General 
Fund. The funds will be used to purchase a computer system to track 
the MBE/WBE process and its success. He said that he did not know 
exactly what the system will measure because the program is not 
currently in place. 



12. Resolution Ratifying Personnel Actions 

No. 89-0228 Resolution, in accordance with the 

requirements of San Francisco City Charter 
Section 3.501, ratifying and approving 
certain personnel actions taken by the 
Director of Airports. 



H. NEN BUSINESS: 

Mr. Turpen introduced a resolution authorizing him to hire an independent 
hearing officer to conduct a variance hearing for AirTrain and Ryan 
International . 

Commissioner Duval 1 thought there was quite a bit of confusion on Ryan's 
part as to thi s process . 

Mr. Turpen said that registered letters are sent to these airlines prior 
to the 60 day notification period reminding them that they have to reapply, 

The resolution was approved unanimously. 

No. 89-0229 



I. CORRESPONDENCE: 

There was no discussion by the Commission 



Minutes, November 21. 1989, Page 11 



ADJOURNMENT TO GO INTO CLOSED SESSION: 



There being no further calendared business before the Commission the 
meeting adjourned at 9:54 AM to go into closed session. 



<fM~ 




Jpan Caramatti 
amission Secretary 



Minutes, November 21, 1989. Page 12 



n 



SAN FRANCISCO 
AIRPORTS COMMISSION 




..MENTS DEPT. 
JAN 8 1390 



>ftOV 



MINUTES 



Decentoer 5, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

December 5, 1989 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER 


B. 




ROLL CALL: 



RESOLUTION 

NUMBER PAGE 



C. ADOPTION OF MINUTES: 



Regular meeting of 

November 21 , 1989 89-0230 



D. ITEMS INITIATED BY COMMISSIONERS: 



POLICY: 

Small Business Enterprise 

Definition 89-0231 3-4 



F. ITEMS RELATING TO ADMINISTRATION, 

OPERATIONS & MAINTENANCE: 

2. Termination of Limousine Service 

Lease No. 85-0108 89-0232 4-5 

3. Candy Mann - Extend See's Candy 

Cart Trial Period 89-0233 5 

4. Revisions to the Five-Year Capital 

Projects Plan 89-0234 5 

5. Bid Call - Contract No. 1866: 

Overlay Road R-16 89-0235 5 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

Duty Free Shoppers - West 
Approval of International 
Terminal Candy Shop Remodeling 89-0236 5 

Pacific Bazaar - Design Approval 89-0237 6 

Resolution Approving Delta Airlines, 

Inc. Lease Modification 89-0238 6 



9. Air Canada - Modification No. 1: 
Resolution Modifying Lease and 
Use Agreement 89-0239 

10. Sale of Former Northwest Airlines 
Improvements in the South 
Terminal 89-0240 



PUBLIC HEARING: 

11. Proposed Fees for Off-Airport 
Rental Car Operators and Other 
Types of Commercial and Courtesy 
Operators 



I. NEW BUSINESS: 

J. CORRESPONDENCE: 

K. CLOSED SESSION: 

L. ADJOURNMENT: 



Minutes, December 5, 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

December 5, 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Patrick A. Murphy 

Absent: Sharon B. Duval 1 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of November 21, 1989 were adopted by 
order of the Commission President. 

No. 89-0230 



D. POLICY: 

The following item was adopted unanimously. 

1 . Small Business Enterprise Definition 

No. 89-0231 Resolution amending the small business 

enterprise definition by increasing 
the gross sales threshold. 

Mr. Lou Turpen, Airport Director, explained that in 1985 the 
Commission defined a small business enterprise as one with a gross 
sales threshold of $600,000 for one principal and $2-mi 1 1 i on for more 
than one principal. He said that based on past inflation as well as 
in anticipation of inflation over the next two years, staff 
recommends that those thresholds be adjusted to $800,000 and 
$2 . 6-mi 1 1 i on respectively, effective January 1, 1990. 

Commissioner Goosby asked for HRCs definitions. 



Minutes, December 5, 1989, Page 3 



Ms. Angels Gittens, Deputy Director of Business and Finance, 
responded that HRC no longer has a definition for concessions because 
the definition of small is now linked to the definition of a minority 
or woman-owned business. A business now only has to be a certain 
size to qualify as a small or woman-owned business. 

Commissioner Goosby asked if HRCs definition for small business was 
$2-mi 1 1 ion. 

Ms. Gittens responded that it varies depending on the type of 
business. For construction it is $1 4-mi 1 1 ion . 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were adopted unanimously. 

2. Termination of Limousine Service Lease No. 85-0108 

No. 89-0232 Resolution approving the termination 

of Limousine Service Lease No. 85-0108 
Association Limousine Operators of San 
Francisco, Inc. as Lessee. 

Mr. Turpen explained that this item calls for termination of 
Associated Limousine's lease for failure to meet their 
responsibilities under their lease. 

Mr. Al Arnaud, attorney for Associated Limousine, told the Commission 
that two separate items are alleged as grounds for default. The 
first is Associated's failure to provide a performance bond. He said 
that under Associated's lease the Airport is required to give notice 
to Associated of that breach and allow them 30 days to cure under. 
He said that Associated has not received written notice in reference 
to the performance bond and has had no opportunity to cure. Mr. 
Arnaud said that the delinquent rent is alleged as of June, 1989. He 
has a facsimile copy of the rent check that Associated paid to the 
Airport in the amount of $36,269.61 for June. He said that it was 
also his understanding that the November payments were made prior to 
this meeting. To date the records indicate that Associated has paid 
$396,246.00 for fiscal year 1989, bringing them current. 

Ms. Gittens explained that regarding the performance bond, a letter 
was hand-carried to Mr. Andy Fenyes of Associated on October 31, 
1989. She said that the Airport did receive a payment for one month 
yesterday along with one of the late fee periods that was due. She 
said that it was her understanding that another payment was made 
today. As of yesterday Associated owed the Airport about $39,000 
which included one months rent in addition to $3,000 in late fees. 

Commissioner Murphy asked if the bond has been replaced. 

Ms. Gittens responded that the bond has not been replaced. 

Commissioner Murphy understood that Associated was still not current 
in their rent. 

Ms. Gittens responded that that was correct. 

Commissioner Stephens asked if Associated's checks have been 
deposi ted. 

Minutes, December 5, 1989, Page 4 



Ms. Gittens responded that they have not been deposited. 

Mr. Turpen said that the motion befor° the Commission is to cancel 
Associated Limousine's lease as of December 31, 1989. He said that 
the performance bond and approximately $39,000 in rent have not been 
paid. Associated received a hand-carried letter regarding their 
performance bond on October 31, 1989, the date the bond expired. 



Candy Mann - Extend See's Candy Cart Trial Period 

No. 89-0233 Resolution extending the trial period 

for Candy Mann to operate a See's 
mobi le candy cart. 



Revisions to the Five-Year Capital Projects Plan 

No. 89-0234 Request for Commission approval of the 

revised Five-Year Capital Projects 
Plan. 

Mr. Turpen said that this item updates the Five Year Plan, adding new 
projects and amending and modifying projects within the Five Year 
Plan. He said that these projects require airline approval under the 
Lease and Use Agreement. One project, the Airport's proposal to buy 
the airline improvements in the International Terminal, was not 
approved by the airlines. He explained that in 1982 and 1983 the 
airlines made certain improvements to the International Terminal, 
specifically, guidance systems and passenger loading bridges as well 
as furniture and miscellaneous items. The Airport, in continuing to 
promote the terminal as a common use facility which it has been since 
its inception, wishes to secure this equipment in order to facilitate 
the common use nature. The airlines have objected. Under the Lease 
and Use Agreement staff must wait six months before returning to the 
Commission. At that time the Commission can include this project in 
the Five Year Capital Plan. He said that staff will return to the 
Commission with an amendment to include this project at some future 
date. 



Bid Call - Contract No. 1866: 
Overlay Road R-16 

No. 89-0235 Resolution approving the scope, budget 

and schedule for Contract 1866, and 
authorizing the Director to call for 
bids and to award this contract to the 
lowest, qualified and responsive 
bidder. 



6. Duty Free Shoppers - Nest 

Approval of International Terminal Candy Shop Remodeling 

No. 89-0236 Resolution approving the remodeling of 

Duty Free Shoppers' Internal tonal 
Terminal Candy Shop. 



Minutes, December 5, 1989, Page 5 



G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

7. Pacific Bazaar - Design Approval 

No. 89-0237 Resolution approving the design of the 

Pacific Bazaar Concession in the North 
Terminal . 



Resolution Approving Delta Airlines, Inc. Lease Modification 

No. 89-0238 Resolution approving modification to 

Delta Airlines, Inc. Lease and Use 
Agreement. 



Air Canada - Modification No. 1 

Resolution Modifying Lease and Use Agreement 

No. 89-0239 Resolution modifying Air Canada Lease 

and Use Agreement No. 82-0110 between 
Airport and Air Canada. 



10. Sale of Former Northwest Airlines Improvements in the South Terminal 

No. 89-0240 Request for Commission approval for 

the sale of former Northwest 
Improvements to Air Canada. 



H. PUBLIC HEARING: 

The public hearing was convened at 9:13 AM and adjourned at 10:45 AM, 
there being no further public comment. A complete court reporter's 
transcript of the public hearing is available. 

1 1 . Proposed Fees for Off-Airport Rental Car Operators and Other 
Commercial Ground Transportation Permittees 



I. NEW BUSINESS: 

There was no discussion by the Commission 



Minutes, December 5, 1989, Page 6 



J. CORRESPONDENCE: 

There was no discussion by the Commission 



K. CLOSED SESSION: 

There was no closed session. 



L. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:45 AM. 




Jean Caramatti 
Commission Secretary 



Minutes, December 5, 1989, Page 7 



\ lm SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEFT. 

FEB 1 I 

SAN FRANCISCO 



MINUTES 



DECEMBER 19, 1989 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Dlractor of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

December 19, 1989 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 



ADOPTION OF MINUTES: 

Regular meeting of 

November 21, 1989 89-0241A 



ITEMS INITIATED BY COMMISSIONERS: 



E. ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

1. Request of DHL Airways, Inc. for 
Variance from Noise Abatement 

Regulation 89-0241 3-4 

2. Request of Emery Worldwide 
Airlines, (formerly AirTrain) 
and Ryan International Airlines 

from Noise Abatement Regulation 89-0242 4 

3. Authorization for Award of North 

Terminal Shoeshine Stands Lease 89-0243 4-5 

4. Resolution Approving the Exercise 
of United Airlines Option to 

Extend their Lease on Plot 5 89-0244 5-6 

5. Bid Call - Contract No. 2062: 

Emergency Boat Ramp R/W 28R 89-0245 6 

F. CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

6. Bid Call - Contract No. 2245: 
International Terminal Cart 
Road Underpass Drainage Pump 

Station Improvement 89-0246 6 

7. Award of Contract No. 2258: 
Emergency Pavement Repair - 

1990 89-0247 6 



G. NEW BUSINESS: 

Status of Internship Program 6-7 

Status of Child Care Program 7-10 

H. CORRESPONDENCE: 10 



J. ADJOURNMENT TO GO INTO CLOSED 

SESSION: 10 



Minutes, December 19, 1989, Page 2 



Minutes 

of the 

Airports Commission Meeting 

December 19, 1989 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:04 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Sharon B. Duval 1 
Patrick A. Murphy 

Absent: Donald R. Stephens 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of November 21, 1989 were adopted by 
order of the Commission President. 

No. 89-0241A 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTNENACE: 

The following items were adopted unanimously. 

1 . Request of DHL Airways, Inc. for Variance from Noise Abatement 
Regulation 

No. 89-0241 Resolution granting to DHL Airways, 

Inc. a variance from Section 
4(B)(1)(a) of the Commission's Noise 
Abatement Regulation from January 1, 
1990 to December 31 , 1990. 



Minutes. December 19, 1989, Page 3 



Mr. Lou Turpen, Airport Director, told the Commission that DHLs 
variance will expire at the end of the year. DHL has applied for an 
extension in a timely fashion. The application was referred to an 
independent hearing officer under the Commission's rule and Mr. 
Wharton's findings have been provided to the Commission. Mr. Turpen 
recommended extending the variance for a period of one year, 
particularly in view of DHLs concerted efforts to come into Stage III 
compliance. He said that DHL will eventually be in 507. compliance. 

Commissioner Goosby assumed that this variance is for one year 
provided that DHL has the proper documentation. 

Mr. Turpen responded that they must have a binding contract. He said 
that the problem is one of supply and demand, however, DHL is high up 
on the priority list. He felt that the problem of obtaining the 
retrofits is not as significant for DHL and Emery as it is for those 
carriers who initiated their efforts later on. 

Commissioner Goosby asked if this was DHLs first request. 

Mr. Turpen responded that this is their second request. They are 
currently operating under a variance to the 25% rule. 

Commissioner Goosby asked if DHL met the deadlines imposed in the 
first variance. 

Mr. Turpen responded that the intention of the noise regulation was 
to cause carriers to comply within reason. He explained that the 
retrofits were not available the first year as they had not yet been 
certified by the FAA. Therefore, it was impossible to comply. DHLs 
commitment at that time was to secure among the first available. 



2. Request of Emery Worldwide Airlines, Inc. (formerly AirTrain) and 
Ryan International Airlines for Variance from Noise Abatement 
Regulation 

No. 89-0242 Resolution granting to Emery Worldwide 

Airlines, Inc. (formerly AirTrain) and 
Ryan International Airlines a variance 
from Section 4(B)(1)(a) of the 
Commission's Noise Abatement 
Regulation from January 1, 1990 to 
December 31 , 1990. 

Mr. Turpen told the Commission that this parallels the DHL item just 
acted upon by the Commission to include the conditions placed upon 
the operator. Essentially it is the same aircraft, the same type of 
retrofit, essentially the same type of conditions with some slight 
modification in terms of the date by which they must provide us with 
a binding contract for the installation of the retrofit. 



Authorization for Award of North Terminal Shoeshine Stands Lease 

No. 89-0243 Resolution approving award of North 

Terminal Shoeshine Stands lease to 
North Terminal Shines. 

Commissioner Bernstein commented that there was a big difference 
between the minimum bid of $25,000 and the actual bid of $80,000. 



Minutes, December 19, 1989, Page 4 



Ms. Gittens responded that the minimum bid is set at the pre-bid 
conference. Staff makes a recommendation and receives reactions at 
the pre-bid. There is generally very little arguement over lowering 
the minimum bid as it does not effect what the Airport will 
ultimately be paid. 

Mr. Turpen added that if staff set all the bids at where they thought 
the bids might come in we might reduce participation to a single 
bidder. Staff tries to set the minimum to encourage participation. 

Commissioner Murphy thought there were two sides to this issue. If 
the minimum is set too low, a reduced bidding climate can result. If 
the minimum is set too high, no one will bid. 

Commissioner Goosby asked how this would be prorated since all three 
sites would not be ready at the same time. 

Ms. Gittens responded that the lease would start at 75 percent. 



Resolution Approving the Exercise of United Airlines Option to Extend 
their Lease on Plot 5 

No. 89-0244 Resolution approves United option and 

establishes new rates for Airport Plot 
5, consistent with the terms of PUC 
Lease 18565. 

Mr. Turpen said that United has three parcels of property, plots 4, 5 
and 6, which run from the North Terminal to Highway 101. Plot 5 is 
the center parcel which was leased to United under a 20 year lease in 
1959 with a 10 year option and a 4.5 year option in United. United 
has executed their option in a timely manner and it is incumbent upon 
the Commission, in view of United's compliance with the terms of the 
lease, to approve the option. 

Commissioner Goosby asked if this land would be involved in the new 
construction. 

Mr. Turpen said that it would. He added that all the leases on that 
property expire in 1993. 

Commissioner Murphy commented that the lease indicates that the 
extended rental rate is the amount mutually agreed upon. He asked 
what happens if we don't agree. 

Ms. Gittens responded that the Commission does prevail but the 
negotiations must take place in good faith. She said that the 
Director of Real Estate sets a market rate. 

Mr. Turpen added that there have been some protracted discussions in 
the past between the City's Department of Real Estate and some 
tenants to achieve an equitable number. He said that he was not 
aware of any particular disagreement between the parties at the end 
of those discussions. 

Commissioner Duvall asked what the previous lease rate was. 

Ms. Gittens responded that 17.5 is the current rate. 

Commissioner Duvall asked when the 17.5 was set. 

Ms. Gittens responded that it was set 10 years ago. 



Minutes, December 19, 1989, Page 5 



Commissioner Goosby asked if any other changes are allowed in the 
agreement. 

Ms. Gittens responded that only the rental rate can be negotiated. 



Bid Call - Contract No. 2062: 
Emergency Boat Ramp R/W 28R 

No. 89-0245 Resolution approving the scope, budget 

and schedule for Contract 2062, and 
authorizing the Director to call for 
bids and to award this contract to the 
lowest, qualified and responsive 
bidder. 

Mr. Turpen explained that this will allow the Airport effective water 
access to and from the Airport, particularly in terms of an emergency 
recovery from the Bay. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

6. Bid Call - Contract No. 2245 : 

International Terminal Cart Road Underpass Drainage Pump Station 
Improvement 

No. 89-0246 Resolution approving the scope, budget 

and schedule for Contract No. 2245, 
and authorizing the Director to call 
for bids and to award this contract to 
the lowest, qualified and responsive 
bidder. 



Award of Contract No. 2258 : 
Emergency Pavement Repair-1990 

No. 89-0247 Resolution awarding Contract No. 2258, 

Emergency Pavement Repair 1990, to 
Ghilotti Bros., Inc. in the amount of 
$175,000.00. 



G. NEW BUSINESS: 

Mr. Turpen asked Dennis Bouey, Deputy Director of Facilities Operations 
and Maintenance, to brief the Commission on the status of the Childcare 
Program. 

Commissioner Goosby also asked for a briefing on the High School 
Internship Program. 

Mr. Turpen said that Sharon Johnson of the Mayor's Office had been 
Minutes, December 19, 1989, Page 6 



involved in putting together a task force. Because the Airport has the 
engineers, the surveyors and cost-estimating people, Dennis Bouey was 
recruited to be the Airport's representative. 

Mr. Bouey told the Commission that due to the earthquake the decision was 
made to put the Internship Program off until springtime. The principals 
of the high schools and individuals from the business portions of the 
program are going to meet in late February. The estimated start-up of the 
program will be the third or fourth week in March. 

Commissioner Goosby said that it was his understanding that John O'Connell 
Trade School, which has an aircraft program, must relocate due to the 
earthquake and they are interested in seeking the Airport's help. He 
explained that the students must have hands-on experience in order for the 
course to be accredited. 

Mr. Bouey told Commissioner Goosby that one of the reasons the program has 
been delayed is due to the damage suffered by the John O'Connell School. 
He said that as far of he knows the School District has not contacted the 
Airport directly. 

Mr. Turpen commented that the Airport received a call within the last 
week. The Airport was asked to provide a site to which O'Connell could 
relocate its shops and facilities. He suggested that they contact City 
College which has a facility on the Airport's North maintenance area. 

Mr. Bouey added that it was his understanding the John O'Connell School 
and City College are now in discussions. 

Mr. Turpen said that the problem was the additional space O'Connell needed 
beyond what City College had available. The Airport does not have a lot 
of space in that area to support their additional requirements. He said 
that the situation is being addressed but he was not certain that all of 
their needs could be accommodated. 



Mr. Bouey explained that the a Task Force has been set up for the Child 
Care Center. Sharon Johnson of the Mayor's Office has designated Lynne 
Bison of that office to sit on the Task Force. The San Mateo County 
Supervisors have designated two staff members to sit on the Task Force as 
have the Child Care Coordinating Council of San Mateo, various labor 
unions and a couple of private architects. 

Mr. Bouey explained that the Task Force is split into two subcommittees: 
Site and Survey. The Site Committee has looked at seven different sites 
surrounding the Airport but has not yet selected a site. Peninsula 
Hospital, one of the sites, has made an overture offering the.ir facility. 
He said that he would guess that it would be the number one or number two 
choice. He felt that the very fact that they have made an overture to 
provide the space for a 24-hour child care facility has a lot of appeal. 
He expected the Site Committee to meet within the next two to three weeks 
to consider this overture. 

Mr. Bouey said that the Survey Committee sent out surveys to all employers 
on the Airport that had 50 employees or more. The surveys were due back 
in early September. Unfortunately, United Airlines failed to send out its 
surveys so the deadline had to be extended to tabulate the results. The 
Survey Committee has met twice in the last month and another meeting is 
scheduled for tomorrow to finish the tabulation of the surveys. He said 
that the actual tabulation has been done by Airport staff and has 
literally consumed over 1,000 hours. 



Minutes, December 19, 1989, Page 7 



Commissioner Duval 1 asked what further participation is anticipated for 
the Airport. 

Mr. Turpen responded that the Airport will continue to participate because 
we bring the only technical resource to that Committee and because the 
majority of our employees are from San Mateo County which appears to be 
where the need is the greatest. He said that the on-Airport sites have 
not faired well in the survey. 

Mr. Bouey responded that one of the standards adopted by the Task Force 
was the noise limit imposed on schools. He said when a noise contour map 
was placed on a map of the Airport only two site appeared to be available. 
One is on the main roadway as you enter the Airport, which is an 
unacceptable location. The other is on the West of Bayshore property. He 
said that the Task Force estimated that it would cost $20,000 to $30,000 
to prepare the site. The Airport estimated that it would cost 
considerably more. The Task Force estimated it would cost about $100,000 
to build the facility. The Airport estimated that it would cost closer to 
$1 -mi 1 1 ion . He said that the Airport brings a more realistic expectation 
of the money that will be needed and can perhaps pare down what the Task 
Force thinks it needs to build. 

Mr. Turpen told the Commission that this is a mini Master Plan effort. 

Commissioner Duval 1 said that she was looking for a characterization of 
the involvement the Airport will have in the continuing program. 

Mr. Turpen said that this will be an independently operated facility. The 
only continuing support the operation will receive from the Airport will 
be in the form of a communication link with employees. The Airport will 
not participate beyond that. 

Commissioner Murphy asked who will operate the facility. 

Mr. Turpen said that that has not been addressed. 

Mr. Bouey added that that question has been asked but no answer has been 
determined. The person now chairing the Task Force Committee is the 
Chairperson of the Child Care Coordinating Council of San Mateo and she 
has expressed an interest in being the operator. 

Mr. Turpen asked if the Commission's view of the Airport's involvement 
differed from hi s view. 

Commissioner Duval 1 did not feel it would be appropriate for the Airport 
to be care providers. The operation should be handled by professionals in 
that field. She said that she believed that such a facility offered a 
direct benefit to the Airport on an extended basis. She believed that 
such a facility will reduce employee turnover and result in a more stable 
work force. For those reasons she felt it important for the Airport to 
have an active position in supporting the on-going program and saw the 
Airport's involvement in the form of financial support. 

Mr. Garibaldi said that the Airport would have a legal problem in 
providing financial support. 



Minutes, December 19, 1989, Page 8 



Commissioner Duval 1 said that she understood but argued that the extended 
network of employers at the Airport will benefit from this program. 

Mr. Turpen agreed that the airlines would benefit. 

Commissioner Goosby said that he assumed that the Center would be able to 
underwrite the facility with the fees being charged the parents. 

Commissioner Murphy disagreed. 

Commissioner Goosby said that the Airport will also benefit indirectly by 
the Internship Program. He said that any way that the students in San 
Mateo and San Francisco counties can be involved in the Airport operation 
will benefit us. He said that the Commission has been discussing this for 
the past five or six years. 

Commissioner Goosby felt that when the child care issue surfaced five or 
six years ago they wanted the Airport to subsidize the operation. He said 
that now that they realize the level of interest this program has and the 
inadvi seabi 1 i ty of locating the facility on the Airport because of the 
noise level, a self-sustaining operation is being envisioned. He thought 
that program deserved a close look. Commissioner Goosby felt that the 
Airport has already made a substantial investment in terms of staff time. 

Mr. Bouey commented that if it were not for the Airport's support the 
entire process would be moving much more slowly. He said that he would 
like to try to accellerate the process as he feels that there is a 
political demand from both the Mayor and the Board of Supervisors of San 
Mateo. 

Commissioner Goosby asked if the consumers of this service will have to be 
Airport employees. 

Mr. Bouey responded that no such restriction currently exists. 

Mr. Turpen said that he was not suggesting that this was cast in concrete 
however, his conversations have always assumed that the facility will be 
open to everyone, not strictly Airport employees. 

Commissioner Murphy asked how the airlines were persuaded to support the 
center. 

Mr. Turpen said that there is a capital funds issue. From an operating 
standpoint he hoped that it would become self-supporting. He felt it was 
a function of the percentage of employees using the facility. He felt 
certain that there was some way to work that issue from the standpoint of 
the number of employees participating. 

Commissioner Murphy said that he envisioned the Airport's on-going role 
would be to make sure that the facility is adequately underwritten on an 
annual basis. He said that the major Airport employers can offer a 
concessionary rate to their employees if they wish. The Airport cannot 
put up the money but it can provide the coordination. 

Mr. Turpen said that the Airport has pledged to do that. 

Commissioner Duval 1 felt that this needs to be established as an on-going 
program within our organization or it will fall apart. 

Commissioner Goosby said that first we should find out what they are 
talking about. 

Mr. Turpen said that we have tried to put in some structure. 



Minutes, December 19, 1989, Page 9 



Mr. Bouey said that before the 
Council had an idea of what th 
groundwork. The Airport sugge 
where the real need was. If e 
in South San Mateo County shou 
County. It could also be used 
on the demonstrated need of th 
selection so that a budget can 
said that at this point the on 
it will be non-profit. He sai 
suggested by the Airport to be 



Airport became involved the Child Care 
ey were going to do without laying the 
sted that a survey be conducted to determine 
mployees came from the South Bay, a facility 
Id be considered over one in North San Mateo 

as a marketing tool in selling the airlines 
eir own employees. The other issue is site 

be established for the capitalization. He 
ly determination that has been made is that 
d that the budget they submitted was 

unfeasible. 



Mr. Bouey said that all of these issues will have to be addressed by the 
Task Force. The first issue was to demonstrate to both the employers and 
to the political entities that there was a need and that we have a site if 
we can get that far, and then to determine the funds necessary and what 
kind of shape this will take. He added that where the facility will be 
built may determine who will participate. For example, if it is built on 
Peninsula Hospital grounds, there will be some call by their employees to 
use this facility. 

Mr. Turpen said that the Airport has spent 1,000s of hours working on the 
master plan. This is really the same thing but it has been an additional 
duty or part time effort on the part of a lot of Airport employees. Now 
it is beginning to take some focus. 

Commissioner Goosby said that he did not want to see San Francisco 
residents short-changed. He said that a resident who lives in San 
Francisco and works on the Peninsula should have access to this facility. 
San Francisco residents expect the Airport and the Commission to look 
after their interests. 

Mr. Turpen agreed. He said that it is a tough issue and the Airport is no 
expert in this area. We are doing everything possible to support it. 



H. CORRESPONDENCE: 

There was no discussion by the Commission 



ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:37 AM to go into closed session. 



/Jefan Caramatti 
/commission Secretary 



Minutes, December 19, 1989. Page 10